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P18-1A Combat Fire, Inc, manufactures steel cylinders and nozzles for two models extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher home

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P18-1A Combat Fire, Inc, manufactures steel cylinders and nozzles for two models extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 12 po BC; ify low-volume (1 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 of multi-purpose dry chemical at 480 PSI. The commercial model is a Both products require 1.5 hours of direct labor for completion. Therefore, total a 10,200)]. Expected annual m facturing overhead is $1,584,280. Thus, the predetermined overhead rate is $16 ($1,584,280 96,300) per direct labor hour. The direct materials cost per unit is $18.5 the home model and $26.50 for the commercial model. The direct labor cost is $19 OJ)unit for both the home and the commercial models. The company's managers identified six activity cost pools and related cost drivens direct labor hours are 96.300 or [1.5 hours X (54,000 + pool as follows. accumulated overhead by cost Expectedopb guilExpected Use Use of 2ntoof Drivers Product Estimated Overhead Cost E11 ThaDriversni 335,000 215,000 35,000 27,000 217,000 i 165,000 25,500 5,258 335,000bil 215,000 moroH nonsda Home cCost Drivers Commer Pounds $ 80,400 150,500 412,300 120.00 Machine hours 8.00 5200 Number of parts Number of tests 15,500 3,680 51,000 10.00 1578 120.00 52,580 non no bobb 837,500 d beo$1,584,280 Gallons Pounds Instructions (a) Under traditional product costing, compute the total unit cost of each pro Prepare a simple comparative schedule of the individual costs by product (simil Illustration 18-3 on page 841). (b) Under ABC, prepare a schedule showing the computations of the activity-based head rates (per cost driver). (c) Prepare a schedule assigning each activity's overhead cost pool to each prod on the use of cost drivers. (Include a computation of overhead cost per unit, reund simir to the nearest cent.) (d) Compute the total cost per unit for each product under ABC (e) Classify each of the activities as a value-added activity (f) Comment on (1) the comparative overhead cost per unit for the two products ABC, and (2) the comparative total costs per unit under traditional costing and A or a non-value-added act 1.le the

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