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Problem 17-01A a-e Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a
Problem 17-01A a-e 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 overhcad is $1,576,678. Thus, the predetermined overhcad rate is $16.37 or ($1,576,678 + 96,300) per direct labor hour. The direct materlals 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 Activity Cost Pools Receiving Cost Drivers Estimated Overhead Commercial Cost Drivers Home 215,000 335,000 120,000 Pounds $90,450 Machine hours 150,850 35,000 27,000 8,000 Forming Number of parts 217,000 165,000 Assembling 405,790 52,000 25,500 15,500 Number of tests 51,000 10,000 Testing 5,258 Gallons 57,838 3,680 1,578 Painting 335,000 Packing and shipping Pounds 820,750 215,000 120,000 $1,576,678 Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.50.) Home Model Commerclal Model Total unit cost 24 LINK TO TEXT LINK TO VIDEO Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimat places, e.g. 12.25.) Activity-Based Overhead Rate Estimated Estimated Activity Cost Pool Overhead Use of Cost Drivers Pounds per pound Receiving Machine hours s per machine hour Forming Parts per part Assembling Tests Testing per test Gallons Painting per gallon Pounds Packing and shipping per pound $
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