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Problem 17-1A (Part Level Submission) Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and

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Problem 17-1A (Part Level Submission) 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), 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 (54,000 + 10,200)]. Expected annual manufacturing overhead s S1 563,000. Thus, the predetermined overhead rate is $16.44 or ($1,583,000 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: Expected Use of Drivers by Product Expected Use of Activity Cost PoolsCost Drivers Receiving Forming Estimated OverheadCost DriversHome Commercial $81,000 146,000 415,000 55,000 61,000 825,000 $1,583,000 335,000 215,000 35,00027,000 217,000 165,000 25,500 15,500 ,2583,680 335,000 215,000 120,000 8,000 52,000 10,000 1,578 120,000 Machine hours Number of parts Number of tests Testing Packing and shipping Pounds

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