Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show steps please Pharoah Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial

Show steps please

image text in transcribed
Pharoah 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 (50.000 units), hall-litre cylinder that holds 2.50 kilograms of multi- purpose dry chemical at 480 PSI (pounds per square inch). The commercial model is a low-volume (9804 units), two-litre cylinder that holds 10 kilogramra of multi-purpose dry chemical at 390 PSI. Both products require 1.25 hours of direct labour for completion. Therefore, total annual direct labour hours are 74,755 or [1.25 hrs. > (50.000 4 9,804)). Estimated annual manufacturing overhead is $1.495.100. Thus, the predetermined overhead rate is $20.00 or ($1495,100 + 74,755) per direct labour hour, The direct materials cost per unit is $18.86 for the home model and $26.76 for the commercial model. The direct labour cast is $18.00 per unit for both the home and commercial models. The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows: Estimated Estimated Use Use of Drivers Activity Cost Pools Cost Drivers Overhead of Cost Drivers by Product Home Commercial Receiving Kilograms $67,600 338,000 216,000 122.000 Forming Machine hours 150.500 35,000 27,000 8,000 Assembling Number of parts 394,200 219,000 167,000 $2.000 Testing Number of tests 52.000 26,000 16.000 10.000 Painting Litres 53,400 6,000 4,000 2000 Packing and shipping Kilograms 777,400 338.000 216,000 122.000 $1495,100 Under traditional product costing, calculate the tor 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 eTextbook and Media Savefor Later Attempts: 0 of 3 used Submit Anover (b) The parts of this question must be comp This part will be available when you complete the part above. (c) The parts of this question must be co d in order. This part will be available when you complete the part above. The parts of this question must be co This part will be available in you complete the part above. (e) The parts of this question m You OS oleta the part above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting An Integrative Approach

Authors: C J Mcnair Connoly, Kenneth Merchant

2nd Edition

099950049X, 978-0999500491

More Books

Students also viewed these Accounting questions