Current Attempt in Progress hces ations US Support 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 10,2001). Estimated annual manufacturing overhead is $1,588,566. Thus, the predetermined overhead rate is $16.50 or ($1.588,566 +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. Estimated Use of Drivers by Product Commercial Activity Cost Pools Cost Drivers Estimated Overhead $87,100 120,000 Receiving Pounds 155,050 3.000 Forming Machine hours Estimated Use of Cost Drivers Home 335.000 215.000 35.000 27.000 217.000 165.000 25.500 15.500 5.258 3.600 335.000 215.000 412.300 52,000 Number of parts Assembling 46,920 10.000 Testing Number of tests 1.578 63.096 Painting Gallons 120,000 824,100 Packing and shipping Pounds $1.588566 Your answer is correct Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, eg. 12.25.) Activity Cost Pool Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Receiving 87100 335000 Pounds .26 per pound Forming 155050 35000 Machine hours 4043 per machine hour Assembling 412300 217000 Parts per part 46920 Testing 217000 1.84 Tests per test 63096 Painting 25500 12 Gallons per gallon 5258 824100 Pounds 2.46 Packing and shipping per pound 1588566 e Textbook and Media x Your answer is incorrect. 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 to 0 decimal places, es. 2,500.) decimal places, e.g. 12.25 and cost assigned to decimal places, e.g. 2,5000 Home Model Commercial M Activity Cost Pool Estimated Use of Drivers Activity-Based Overhead Rates Estimated Use of Drivers Activity-Base Overhead Rati Cost Assigned Receiving Forming Assembling Testing Painting Packing and shipping Total costs assigned (a) Units produced Overhead cost per unit(a) (bil Assistance Used e Textbook and Media Home Model Commercial Model Total cost per unit $ e Textbook and Media X Your answer is incorrect. Classify each of the activities as a value-added activity or a non-value-added activity. Activity Receiving Forming Assembling Testing Painting Packing and shipping e Textbook and Media