Question 1 of 2 -71 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 x (54,000 + 10,200)]. Estimated annual manufacturing overhead is $ 1,575,500. Thus, the predetermined overhead rate is $ 16.36 or ($ 1,575,500 - 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 Cost Drivers Estimated Overhead Cost Drivers Home Commercial Activity Cost Pools $ 87,100 335,000 215,000 Receiving Pounds 120.000 151.900 35.000 Machine hours 27.000 8.000 Forming 410,130 217.000 165,000 52.000 Assembling Number of parts 53.040 25.500 15.500 10,000 Number of tests Testing 5.258 52,580 3,680 1.578 Painting Gallons 820.750 335,000 215,000 Pounds 120.000 Packing and shipping $ 1,575,500 PRINTER VERSION BACK Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.25.) Home Model Commercial Model Total unit cost 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 Expected Activity-Based Overhead Use of Cost Drivers Overhead Rate Receiving Pounds per pound $ $ Forming Machine hours $ per machine hour Assembling Parts $ per part Testing Tests per test Painting Gallons per gallon $ Packing and shipping Pounds per pound $ MacBook Pro NER ESOURCES 3 by Study 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 egg 2 decimal places, e.g. 12.25 and cost assigned to o decimal places, e.g. 2,500.) Home Model Commercial Model Expected Use Activity-Based guishers Expected Use Cost of Activity Cost Pool Activity-Based Overhead Cost mo (54,0 of Overhead Drivers Rates Assigned Drivers Rates Assigned Receiving $ $ Forming $ $ guishers Assembling $ $ he (54,000 Testing $ Painting $ $ egg. $ $ Packing and shipping $ $ Total costs assigned (a) fine is a high $ Units produced (b) Overhead cost per unit (a) + (b)] $ FETY MacBook Pro 30 999 DOO I $ A % 5 & 7 2 3 6 8 9 NEXT ASSIGNMENT RESOURCES ACC 192 Ch 17 Homework Exercise 17-1 Problem 17.11 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 $ Review Score Review Results by Study Objective 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 . By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts of 15 used SAVE POR LATER SUBMIT ANSWER MacBook Pro 20 888 # 3 % 5 & 7 * 00 2 4 6
