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please find the answer Sheridan Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a
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Sheridan 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 (50,000 units), half-litre cylinder that holds 2.50 kilograms of multipurpose dry chemical at 480PSI (pounds per square inch). The commercial model is a low-volume (9,880 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390PSI. Both products require 1.25 hours of direct labour for completion. Therefore, total annual direct labour hours are 74,850 or [1.25 hrs. (50,000+9,880)]. Estimated annual manufacturing overhead is $1,497,000. Thus, the predetermined overhead rate is $20.00 or ($1,497,00074,850) per direct labour hour. The direct materials cost per unit is $19.14 for the home model and $27.16 for the commercial model. The direct labour cost is $20.20 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: The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool a Under traditional product costing, calculate the total unit cost of each product. Prepare a simple comparative schedule of individual costs by product. (Round answers to 2 decimal places, eg. 15.25.) eTextbook and MediaStep by Step Solution
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