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 home model is a high-volume (50,000 units), half-litre cylinder that holds 2.5 kilograms of multi-purpose dry chemical at 480 PSI (pounds per square inch). The commercial model is a low-volume (9,880 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390 PSI. Both products require 1.25 hours of direct labour for completion. Therefore, total annual direct labour hours are 74,850 or [1.25 hrs. x (50,000 9,880)]. Estimated annual manufacturing overhead is $1,497,000. Thus, the predetermined overhead rate is $20.00 or ($1,497,000 74,850) per direct labour hour. The direct materials cost per unit is $19.14 for the home model and $27.16 for the commercial model. The direct labour cost is $20.20 per unit for both the home and commercial models. The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows: Estimated Estimated Use Overhead Estimated Use Activity Cost Pools Cost Drivers of Cost Drivers Receiving Forming Assembling Testing Painting Packing and shipping Kilograms Machine hours Number of parts Number of tests Litres Kilograms of Drivers by Product Home Commercial 121,000 8,000 53,000 10,000 2,000 121,000 $67,600 151,200 394,200 338,000 217,000 36,000 28,000 219,000 166,000 26,000 16,000 6,000 4,000 338,000 217,000 54,600 777,400 $1,497,000