PROBLEM 17-1A: Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers.
t Problem 12-LA Combat Fire, Inc. matures steel onders and for two feet (1) home g rand (2) o f halgaon cylinder that holds 2 1/2 pounds of poedrych PS The commerce model is a low vo (10.200 t chemical at 300 PSL Both products reque 15 hours a vec Therefore, total de labor hours 300 1.5 overhead is $1.582.100. Thus, the prede n overhead rates $16.43 $1.582.100 4 96 300) per direct bor hou The direct o r commercial model. The director co 519 per for both the home and the commercial models he the home made high volume 50.000 o n binder that holds 10 pounds of purpose dry (54.000 + 10,200)| Expected acting 1850 for the home model and $26.50 for the The company's managers identified activity cost pools and r ed cost drivers and accurated overhead by cost pool as follows Expected Use Activity Cost Pools Commercial Receiving Forming Assembling Testing Penting Packing and shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gations Pounds Estimated Overhead $87,000 155.000 407.000 50,000 57.100 Expected Use of Cost Drivers 335,000 35,000 217,000 25,500 5,258 335.000 Home 215.000 27.000 165.000 15.500 3,680 215,000 51,562.100 cost of each product and answers Under traditional product on compute the total Home Model Commercial Model ABC presche the c onstheatybovat per cost drive) wpected Activity Based s t Divers Der Rate Activity Cest Pl Activity Cost Pool Overbe e ated per machine how DURCES Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, ... 12.25.) Estimated Expected Activity Based Activity Cost Pool Overhead Use of Cost Drivers Overhead Rate Receiving Pounds per pound Study Forming Machine hours per machine hour Assembling Parts per part Testing Tests per test Painting Gallons per gallon Packing and shipping Pounds per pound 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 decimal places, G. 2,500.) Home Model Commercial Model Activity Cost Pool Expected use of Activity Based Expected Use of Activity and customed Drivers Overhead Rates Drivers Overhead lates Receiving Forming Assembling Testing Painting Packing and shipping ACCOLT Testing CALCULATOR Painting Packing and shipping Total costs assigned (a) Units produced (b) Overhead cost per unit (a) (b)] Compute the total cost per unit for each product under ABC. (Round answer to 2 decimal places, e.g. 12.25.) Home Model Commercial Model Total cost per unit Classify each of the activities as a value-added activity or a non-value-added activity Activity Receiving Forming Assembling Testing Painting Packing and shipping
