Question 4 of 6 - / 1 II! 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 anual direct labor hours are 96,300 or (1.5 hours (54,000 + 10.200). Estimated annual manufacturing overhead is $1.568,390. Thus, the predetermined overhead rate is $ 16.29 or ($ 1,568,390 +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 si tactivity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Estimated Use of Drivers by Product Activity Cost Pools Cost Drivers Estimated Overhead Home Commercial Estimated Use of Cost Drivers 335,000 Receiving Pounds $87.100 215,000 120,000 Forming Machine hours 152,950 35,000 27,000 8.000 Assembling Number of parts 410.130 217.000 165,000 52,000 Number of tests 44,880 25,500 Testing 15,500 10,000 Painting Gallons 52.580 5,258 3,680 1,578 Pounds Packing and shipping 820.750 335.000 215,000 120,000 $ 1,568,390 Question 4 of 6 ./1 Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places.es 12.50) Home Model Commercial Model Total unit cost $ $ e Textbook and Media 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 pour Forming Machine hours $ per maci hour per Assembling Parts $ part Tests $ per Testing Gallons $ per gallo Painting Pounds $ per pour Packing and shipping $ 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 0 decimal places, e.g. 2,500.) Commercial Model Activity-Based Overhead Rates Cost Assigned Estimated Use of Drivers Cost Assigned $ $ $ $ $ $ $ $ = 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 0 decimal places, e.g. 2,500.) Activity Cost Pool Home Model Activity-Based Overhead Rates Estimated Use of Drivers Estimated Drive Cost Assigned Receiving $ $ $ $ Forming Assembling $ Testing $ Painting $ Packing and shipping $ Total costs assigned (a) Units produced (b) Overhead 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 e Textbook and Media
