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Only B please thank you Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and

Only B please thank you

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 (54,000 + 10,200)]. Estimated annual manufacturing overhead is $1,569,238. Thus, the predetermined overhead rate is $16.30 or ($1,569,238 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.

Estimated Use of Drivers by Product

Activity Cost Pools

Cost Drivers

Estimated Overhead

Estimated Use of Cost Drivers

Home

Commercial

Receiving Pounds

$83,750

335,000

215,000

120,000

Forming Machine hours

155,050

35,000

27,000

8,000

Assembling Number of parts

403,620

217,000

165,000

52,000

Testing Number of tests

44,880

25,500

15,500

10,000

Painting Gallons

57,838

5,258

3,680

1,578

Packing and shipping Pounds

824,100

335,000

215,000

120,000

$1,569,238

(a)

Correct answer iconYour answer is correct.

Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.50.)

Home Model

Commercial Model

Total unit cost

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 2 decimal places

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(b)

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

Estimated Use of Cost Drivers

Activity-Based Overhead Rate

Receiving

$enter a dollar amount

enter an amount of pounds

Pounds

$enter a dollar amount per pound rounded to 2 decimal places

per pound
Forming

enter a dollar amount

enter a number of machine hours

Machine hours

$enter a dollar amount per machine hour rounded to 2 decimal places

per machine hour
Assembling

enter a dollar amount

enter a number of parts

Parts

$enter a dollar amount per part rounded to 2 decimal places

per part
Testing

enter a dollar amount

enter a number of tests

Tests

$enter a dollar amount per test rounded to 2 decimal places

per test
Painting

enter a dollar amount

enter an amount of gallons

Gallons

$enter a dollar amount per gallon rounded to 2 decimal places

per gallon
Packing and shipping enter a dollar amount

enter an amount of pounds

Pounds

$enter a dollar amount per pound rounded to 2 decimal places

per pound

$enter a total amount

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