| 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 × (54,000 + 10,200)]. Expected annual manufacturing overhead is $1,564,780. Thus, the predetermined overhead rate is $16.25 or ($1,564,780 ÷ 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.
 
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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 Expected Use of Cost Drivers Cost Drivers Pounds Machine hours Number of parts Number of tests Gallons Pounds Estimated Overhead Activity Cost Pools Receiving Forming Assembling Testing Painting Packing and shipping Home Commercial $93,800 161,000 368,900 51,000 52,580 837,500 S1,564,780 335,000 215,000 35,000 27,000 217,000 165,000 25,500 15,500 5,258 3,680 335,000 215,000 120,000 8,000 52,000 10,000 1,578 120,000 Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimai places, e.g. 12.25.) Home Model Commercial Model Total unit cost Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimail places, e.g. 12.25.) Activity Cost Pool Receiving Forming Assembling Testing Painting Packing and shipping Estimated Overhead Expected Use of Cost Drivers Activity-Based Overhead Rate Pounds Machine hours Parts per pound per machine hour per part per test per gallon per pound ests Gallons Pounds 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, e.g. 12.25 and cost assigned to O decimal places, e.g. 2,500.)
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