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

SwiftyFire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. Thehome modelis a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. Thecommercial modelis 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 $1,569,040. Thus, the predetermined overhead rate is $16.29or ($1,569,040 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.

Use of Drivers by Product
Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Home Commercial
Receiving Pounds $87,100 335,000 215,000 120,000
Forming Machine hours 148,050 35,000 27,000 8,000
Assembling Number of parts 407,960 217,000 165,000 52,000
Testing Number of tests 45,900 25,500 15,500 10,000
Painting Gallons 52,580 5,258 3,680 1,578
Packing and shipping Pounds 827,450 335,000 215,000 120,000
$1,569,040

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 $enter a dollar amount enter a number of pounds Pounds $enter a number per pound rounded to 2 decimal places per pound
Forming enter a dollar amount enter a number of machine hours Machine hours $enter a number per machine hour rounded to 2 decimal places per machine hour
Assembling enter a dollar amount enter a number of parts Parts $enter a number per part rounded to 2 decimal places per part
Testing enter a dollar amount enter a number of tests Tests $enter a number per test rounded to 2 decimal places per test
Painting enter a dollar amount enter an amount of gallons Gallons $enter a number per gallon rounded to 2 decimal places per gallon
Packing and shipping

enter a dollar amount

enter an amount of pounds Pounds $enter a number per pound rounded to 2 decimal places per pound
$enter a total amount

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