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Please answer B,C,D, and E Crane, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2)
Please answer B,C,D, and E
Crane, 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)]. Estimated annual manufacturing overhead is $1,577,308. Thus, the predetermined overhead rate is $16.38 or ($1,577,308 = 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. Estimated Use of Drivers by Product Cost Drivers Activity Cost Pools Receiving Forming Assembling Testing Painting Packing and shipping Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Use of Cost Drivers 335,000 35,000 217,000 25,500 5,258 335,000 Estimated Overhead $83,750 152,950 407,960 54,060 57,838 820,750 $1,577,308 Commercial 120,000 8,000 52,000 Home 215,000 27,000 165,000 15,500 3,680 215,000 10,000 1,578 120,000 (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 $ Pounds $ 1 Forming Machine hours Assembling Parts $ ! Testing Tests $ Painting Gallons 1 Packing and shipping Pounds $ e Textbook and Media Savr for later Attempts: 0 of 3 used Submit Answer (c) Question 5 of 6 > 0.6/3 = Tests $ per test Gallons $ pel gallon Pounds $ per pound 1 e Textbook and Media Save for Later Attempts:0 of 3 used Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above, (d) The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part aboveStep by Step Solution
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