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Problem 17-01A a-e Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a
Problem 17-01A a-e 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), halo-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 4B0 PSI. The commercial model is a low-volume (10,200 units), tao-gallon cylinder that holes 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 lebor hours are 95,300 or [1.5 hours x (54,000 + 10,200)]. Estimated annuel manufacturing overhead is $1,567,870. Thus, the predetermined overhead rete is $16.26 or ($1,567,870 +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 Estimated Use of Activity Cost Pools Cost Drivers Estimated Overhead Cost Drivers Home Commercial Receiving Pounds 335,000 215,000 120.000 Forming Machine hours 152,950 35,000 27,000 BOLU Assembling Number of parts 401,450 217,000 165,000 52,000 Testing Number of tests 53,040 25,500 15,500 10,000 Painting Gallor's 52.530 5,256 3,680 1.578 Packing and shipping Pounds 824,100 335,000 215,000 120,000 $1.567,670 $83.750 * You' answer is incorrect. Try again Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.50.) Home Model Commercial Model Total unit cost 62.18 70.18 LINK TO TEXT LINK TO VIDEO 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 per pound Forming Machine hours per machine hour Assembling Parts per part blicidadi llllll Testing Tests per test x Painting Gallons per gallon x Packing and shipping Pounds per pound LINK TO TEXT LINK TO VIDEO Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to o decimal places, e.g. 2,500.) Home Model Commercial Model Estimated Use of Activity-Based Estimated Use of Activity-Based Activity Cost Pool Overhead Rates Cost Assigned Drivers Overhead Rates Cost Assigned Receiving Drivers Farming Assembling Testing Painting Packing and shipping Tolel costs assigned Units produced (b) Overhead cost per unit [(a) = (b) LINK TO TEXT LINK TO VIDEO * Your answer is incorrect. Try again. Compute the total cost per unit for each product unde- ABC. (Round answer to 2 decimal places, e.g. 12.25.) Home Model Commercial Model Total cost per unit
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