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Sheridan Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher.

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Sheridan 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 21/2 pounds of multipurpose 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)]. Estimated annual manufacturing overhead is $1,577,770. Thus, the predetermined overhead rate is $16.38 or ($1,577,77096,300) 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: The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rote to 2 decimal ploces, eg. 12.25. )

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