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Problem 17-1A (Part Level Submission) Combat Fire, 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 (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose 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 hours x (54,000 + 10,200)). Expected annual manufacturing overhead is $1,568,500. Thus, the predetermined overhead rate is $16.29 or ($1,568,500 - 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 company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows: Expected Use of Drivers by Product Expected Use of Activity Cost Pools Cost Drivers Estimated Overhead Cost Drivers Home Commercial Receiving Pounds $83,900 335,000 215,000 120,000 Forming Machine hours 153,000 35,000 27,000 8,000 Assembling Number of parts 402,000 217,000 165,000 52,000 Testing Number of tests 53,000 25,500 15,500 10,000 Painting Gallons 53,600 5,258 3,680 Packing and shipping Pounds 823,000 335,000 215,000 120,000 $1,568,500 1,978 Window Help edugen.wileyplus.com WileyPLUS Prepare A Schedule Assi... Email from Google Unit 4: Chapter 17 Assign..... ing, 6e ouncements CALCULATOR PRINTER VERSION edugen.wileyplus.com . Answer Problem 17-1A (Part Level Submission) 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 re Total unit cost 61.94 69.94 t es, M Copyright 2000-2020 by John Wiley & Sons, Inc. or related companies. All rights reserved. tet WA VIDEO: SIMILAR PROBLEM Attempts: 3 of 3 used brrect. View History Bookmarks Window Help edugen.wileyplus.com You have logged into MyP.. Gmail - Email from Google Unit 4: Chapter 17 Assign Wiley PLUS Prepare A Schedule Assi... LUS Kimmel, Accounting, 6e Help System Announcements CALCULATOR PRINTER VERSION Your swer is correct. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Roun to 2 decimal places, e.g. 12.25.) Estimated Activity Cost Pool Expected Activity-Based Overhead Use of Cost Drivers Overhead Rate Receiving 83,900.00 335000 Pounds 25 per pound Forming 153,000.00 35000 Machine hours 4.37 per machine hour Assembling 402,000.00 217000 Parts 1.85 per part Testing $53,000.00 25500 Tests 2.08 per test Painting $53,600.00 525 Gallons 10.19 per gallon $ Packing and shipping $823,000.00 335000 Pounds 2.46 per pound 1568500 Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 2 of 3 used MICE Edit View History Bookmarks Window Help Sun Bedugen wieplus.com You have good to me Gral. Enal from Google WPLUS Pro A Schedule Asal Training & Fest Spel+ tice PLUS Kimmel, Accounting, 6e 7 Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Prepare a schedule assigning each activity's 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 decimal places, e.g. 2,500.) me Model Commercial Model Expected Use Activity-Based Activity Cost Pool Expected Use Activity-Based of Overhead Cost Assigned of Overhead Cost Assigned Drivers Rates Drivers Rates Receiving 215000 53750 25 120000 30000 .25 -6 Forming 27000 117990 4.37 8000 34960 Assembling 165000 305250 1.85 52000 96200 1.85 Testing 15500 10000 Painting 3680 1578 Packing and shipping 215000 120000 SUN Total costs assigned (a) Units produced (6) Overhead cost per unit Click if you would like to show Work for this question Open Show Work 09 Q
