Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

URGENT PLEASE !!!!! Cullumber Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial

URGENT PLEASE !!!!!

image text in transcribedimage text in transcribed

Cullumber 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), half-litre cylinder that holds 2.50 kilograms of multipurpose dry chemical at 480 PSI (pounds per square inch). The commercial model is a low-volume (13,500 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390PSI. Both products require 1.50 hours of direct labour for completion. Therefore, total annual direct labour hours are 95,250 or [1.50hrs.(50,000+13,500)]. Estimated annual manufacturing overhead is $1,524,000. Thus, the predetermined overhead rate is $16.00 or ($1,524,00095,250) per direct labour hour. The direct materials cost per unit is $18.54 for the home model and $26.92 for the commercial model. The direct labour cost is $19.20 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: (d) Your answer is incorrect. Calculate the total cost per unit for each product under ABC. (Round answers to 2 decimal places, e.g. 15.25.) eTextbook and Media Attempts: 1 of 3 used (e) The parts of this question must be completed in order. This part will be available when you complete the part above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions