P5.35A (LO 1, 2, 3) FireOut Inc. manufactures steel cvlinders and nozzles for two models of fire extin- guishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-litre cylinder that holds 2.5 kilograms of multi-purpose dry chemical at 480 PSI (pounds per square inch). The commercial model is a low-volume (10,200 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labour for completion. Therefore, total annual direct labour hours are 96,300 or [1.5 hrs. X (54,000 +10,200)]. Estimated annual manufacturing overhead is $1,502,280. Thus, the pre- determined overhead rate is $15.60 or ($1,502,280 96,300) per direct labour hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labour cost is $19 per unit for both the home and commercial models. The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows: Assi Cost clas non Estimated Use of EITIT Drivers by Product Estimated Use Estimated Commercial of Cost Drivers Home Overhead Cost Drivers Activity Cost Pools 215,000 27,000 165,000 120,000 8,000 52,000 10,000 1,578 120,000 335,000 35,000 217,000 25,500 70,350 Kilograms Machine hours Receiving Forming Assembling Testing Painting Packing and shipping 150,500 390,600 51,000 52,580 Number of parts 15,500 3,680 215,000 Number of tests 5,258 Litres 787,250 335,000 Kilograms $1,502,280 Instructions a. Under traditional product costing, calculate the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product (similar to Illustration 5.3). b. Under ABC, prepare a schedule showing the calculations of the activity-based overhead rates (per cost driver) c. Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Include a calculation of overhead cost per unit, rounding to the nearest cent.) d.Calculate the total cost per unit for each product under ABC. e. Classify each of the activities as a value-added activity or a non-value-added activity 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 costing and ABC