Problem 17-1A (Part Level Submission) 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: 1 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 completi Therefore, total annual direct labor hours are 96,300 or (1.5 hours x (54,000 + 10,200)]. Expected annual manufacturing overhead is $1,577,300. Thus, the predetermined overhead rate is $16.38 or ($1,577,300 +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: Expected Use of Drivers by Product Activity Cost Pools Receiving Forming Assembling Testing Painting Packing and shipping Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Overhead $84,400 153,000 407,000 54,000 57,900 821,000 $1,577,300 Expected Use of Cost Drivers 335,000 35,000 217,000 25,500 5,258 335,000 Home 215,000 27,000 165,000 15,500 3,680 215,000 Commercial 120,000 3,000 52.000 10,000 1.578 120,000 CNG put pro 12 Use of cost Drivers Pounds Home Model Commercial Model Totalnit cost st Under ABC. prepare a schedule showing the computations of the activity based overhead rates per cont driver). (Round overhead rate to 2 decimal places .. 12.25.) Estimated Expected Activity-Based Activity Cost Pool Overhead Overhead Rate Receiving per pound Forming Machine hours per machine hour Assembling per part Testing per test Painting Gallons per gallon Pading and shipping Pounds per pound 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, eg. 12.25 and cost assigned decimal places e.g. 2.500.) Home Heel Commercial Model Ac c ess Expected Use of Activity-Based Activity Cost Pool Activity-Based Expected Use of Drive Cost Assigned Cost Assigned Overhead Rates Overhead Rates Receiving Forming Assembling Testing Painting Pading and shipping Total costs assigned (o) Units produced (5) Overhead cost per unit (a) (b) Compute the total cost per unit for each product under ABC (Round answer to 2 decimal places g. 12.25 Home Model Commercial Model Totalco per unit Cassify each of the activities as a value added activity or a nonvaluer added activity Activity Receiving Forming Assembling Testing Painting Pading and shipping