Frecut, Inc. manufactures steel cylinders and name for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high volume (54,000 units, haitreylinder that holds 2.50 kilograms of multi-purpose dry chemical 480 PSI (pounds per square inch. The commercial model is a low volume (10,200 units), two tre cylinder that holds 10 kilograms of multipurpose dry chemical 190 PSI. Both products require 1.50 hours of direct labour for completion. Therefore, total anual direct labour hours are 96.300 or 1.50 hrs. (54.000 + 10.2001) Expected annual manufacturing overhead is $1,500,280. Thus, the predetermined overhead rate is $15.60er (51,502,260 +96,300) per direct labour hour. The direct materials cost per unit is $19.00 for the home model and $26.46 for the commercial model. The direct bour costs $19.20 per unit for both the home and the commercial models The company's managers identified six activity cost pools and related cost drivers, and accumulated overhead by cost pool as follows: Estimated Expected Use Expected Use Activity Cost Pools Cost Drivers Overhead of Cost Drivers of Drivers by Product Home Commercial Receiving Kilograms $70,510 339,500 217,000 122,500 Forming Machine hours 150,800 36,300 28.000 8,300 Assembing Number of parts 391,000 220,500 167.000 Testing Number of tests 53,500 52.100 25,500 16400 10,100 Painting Litres 52,980 5,970 3870 2,100 Packing and shipping klograms 764.890 339,500 217.000 122.500 $1,502,200 Under traditional product costing, calculate the total unit cost of each product. Prepare a simple comparative schedule of the individual cos w product. (Round answers to 2 decimal places. 18.25.) Products Manufacturing Costs Home Madel Commercial Model Direct materials Direct labour Overhead Total unit cost Under ABC, prepare a schedule showing the calculations of the activity based overhead rates (per cost driver). (Round rate per cost driver to 2 decimal places, .g. 15.25 and other answers to decimal places .. 1525.) Est. Est Cost Cost Pool Usage Rate Drivers Receiving per kilogram Forming $ per machine Assembly Testing per test Painting per tre Packing & Shipping per kilogram Prepare a schedule assigning each activity's overhead cout pool to each product based on the use of cost drivers (Round per unit cost to 2 decimal places, eg. 15.25 and other answers to decimal places eg. 1825.) Activity based overhead applied Home Commercial Receiving kilograms Forming machine hours Assembly number of parts Testing-number of tests Painting-stres Packing and shipping-kilograns Total overhead applied $ Total units produced Per unit overhead cost Calculate the total cost per unt for each product under ABC. (Round answers to 2 decimal places.. 15.25.) Home Commercial Per unit cost Classily each of the activities as a value-added activity or a non-value-added activity Receiving Forming Assembling Painting Padding and shipping
