View Policies Show Attempt History Current Attempt in Progress Bonita, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) 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 PS1. 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 anual direct labor hours are 96,300 or 11.5 hours * (54.000 - 10.2001). Estimated annual manufacturing overhead is $1,581808, Thus, the predetermined overhead rate is $16.43 or (51.581,808 + 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and 526 50 for the commercial model. The direct labor cost is 519 per unit for both the home and the commercial models. The company's managers identied 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 Cost Drivers Home Commercial Estimated Overhead Activity Cost Pools Cost Drivers 215.000 335.000 587.100 130.000 Pounds Receiving id by cost pool as follows Estimated Use of Drivers by Product Cost Drivers Estimated Overhead Activity Cost Pools Receiving Estimated Use of Cost Drivers Home Commercial Pounds $87.100 335.000 215.000 120.000 Forming Machine hours 152,950 35.000 27,000 8.000 Assembling Number of parts 410.130 217.000 165.000 52.000 Testing 53.040 25.500 15.500 10.000 Number of tests Gallons Painting 57,838 258 2680 1.578 Packing and shipping Pounds 820.750 335.000 215.000 120.000 51.581.808 TIF Sunny 11 c O O 1.273 ili (a) Your answer is correct. Under traditional product casting compute the total unit cost of each product. (Round answers to 2 decimal proces es 12.50) Home Model Commercial Model Total unit cost $ 6215 5 70.15 e Textbook and Media Attempts 2 of 15 used (b) M 1.2/3 E HI tivity Pool Estimated Overhead Estimated Use of Cost Drivers Activity Based Overhead Rate iving $ 87100 335000 Pounds $ 0.26 per pound sing 152950 35000 Machine s hours 4:12 per machine hour mbling 410130 217000 Parts 5 189 per part ng 52040 25500 Tests S 200 per test ting 5258 Gallons $ per gallon ing 335300 820750 5 Pounds per pom ging 159 1808 M 21S Question 3 of 3 1.2/3 E Home Model Activity Cost Pool Estimated Use of Drivers Activity-Based Overhead Rates Estimated Drive Cost Assigned Receiving $ Forming $ $ Assembling Testing 5 5 Painting $ Packing and shipping Total costs assigned al Sunny 1.2/3 Estimated Use of Drivers Commercial Model Activity-Based Overhead Rates Cost Assigned $ $ $ $ $ $ $ $ $ tbook and Media Attempts of 15 used
