FireOut, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The homemodel is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multipurpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hrs. x (54,000 + 10,200)]. Expected annual manufacturing overhead is $ 1,558,280 . Thus, the predetermined overhead rate is $ 16.18 or ($ 1,558,280 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The companys managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows.

Expected Use of Drivers by Product
Activity Cost Pools	Cost Drivers	Estimated Overhead	Expected Use of Cost Drivers	Home	Commercial
Receiving	Pounds	$ 74,900	335,000	215,000	120,000
Forming	Machine hours	152,500	35,000	27,000	8,000
Assembling	Number of parts	404,800	217,000	165,000	52,000
Testing	Number of tests	45,700	25,500	15,500	10,000
Painting	Gallons	52,580	5,258	3,680	1,578
Packing and shipping	Pounds	827,800	335,000	215,000	120,000
$ 1,558,280

(a)

	Your answer is correct.

Under traditional product costing, compute the total unit cost of each product.(Round answers to 2 decimal places, e.g. $12.25.)

Home Model	Commercial Model
Total unit cost	$	$

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Attempts: 2 of 3 used

(b)

	Your answer is correct.

Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver).(Round overhead rate to 2 decimal places, e.g. $12.25.)

Activity Cost Pool	Estimated Overhead	Expected Use of Cost Drivers	Activity-Based Overhead Rate
Receiving	$		Pounds	$	per pound
Forming			Machine hours	$	per machine hour
Assembling			Parts	$	per part
Testing			Tests	$	per test
Painting			Gallons	$	per gallon
Packing and shipping			Pounds	$	per pound
$

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Attempts: 2 of 3 used

(c)Prepare a schedule assigning each activitys overhead cost pool to each product based on the use of cost drivers.(Round overhead cost per unit to 2 decimal places, e.g. $12.25 and cost assigned to 0 decimal places, e.g. $2,500.)

Home Model	Commercial Model
Activity Cost Pool	Expected Use of Drivers	Activity-Based Overhead Rates	Cost Assigned	Expected Use of Drivers	Activity-Based Overhead Rates	Cost Assigned
Receiving		$	$		$	$
Forming		$	$		$	$
Assembling		$	$		$	$
Testing		$	$		$	$
Painting		$	$		$	$
Packing and shipping		$	$		$	$
Total costs assigned (a)	$	$
Units produced (b)
Overhead cost per unit [(a) (b)]	$	$