P17.1A (LO 1, 2, 3) 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 chemi- cal 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). Estimated annual manufacturing overhead is $1,584,280. Thus, the predetermined overhead rate is $16.45 or ($1,584,280+ 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 costs; Excel the home and the commercial models. men to mbelwond i m n The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Estimated Use Estimated of Drivers by Product Use of Estimated Cost Cost Drivers Overhead Drivers Home Commercial 80,400 150,500 412,300 51,000 52,580 837,500 215,000 27,000 165,000 15,500 Pounds 335,000 35,000 120,000 8,000 52,000 10,000 Machine hours Number of parts 217,000 25,500 Yl5,258 335,000 Number of tests Gallons 3,680 1,578 120,000 Pounds 215,000 $1,584,280 o in Instructions a. Under traditional product costing co de total unit cost of each product. Prepare a simple comparative schedule of the indiviaast costs by product (similar to Illustration 17.3). b. Under ABC, prepare a schedule showiag the computatic ns of the activity-based overhead rates (per cost driver). a. U Prepare a schedule assigning each activity's overbead cost pool to each product based on the use of cost drivers. (Include a computation of overhead cost per unit, rounding d. Compute the total cost per unit for each product under ABC Classify each of the activities as a value-added activity or a non-value-added activity c. c. C to the nearest cent.) $1 d. Co e. f. Comment on (1) the comparative overhead cost per unit for the two products under ABC, and (2) the comparative total costs per unit under traditional costino and ARC