Question 1 FireOut 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-litre cylinder that holds 2.5 kilograms of multi-purpose dry chemical at 480 PSI (pounds per square inch). The commercial model is a low-volume (9,500 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390 PSI. Both products require 1.50 hours of direct labour for completion. Therefore, total annual direct labour hours are 95,250 or (1.50 hrs, x (54,000 + 9,500)). Estimated annual manufacturing overhead is $1,524,000. Thus, the predetermined overhead rate is $16.00 or ($1,524,000 - 95,250) per direct labour hour. The direct materials cost per unit is $18.12 for the home model and 526.30 for the commercial model. The direct labour cost is 518.40 per unit for both the home and commercial models. The company's managers identified six activity cost pools and related cost driver's, and estimated overhead by cost pool as follows: Activity Cost Pools Cost Drivers Receiving Kilograms Forming Machine hours Assembling Number of parts Testing Number of tests Painting Litres Packing and shipping Kilograms Estimated Estimated Use Estimated Use Overhead of Cost Drivers of Drivers by Product Home Commercial $67,200 336,000 215,000 121,000 151,200 36,000 28,000 8,000 392,400 218,000 165,000 53,000 54,000 27,000 16,000 11,000 52,800 6,000 4,000 2,000 806,400 336,000 215,000 121,000 $1,524,000 (a) Under traditional product costing, calculate the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product. (Round answers to 2 decimal places, e.g. 15.25.) Products Manufacturing Costs Home Model Commercial Model Direct materials Direct labour Overhead Total unit cost