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Question 9 FireOut, 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 multipurpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of mu of direct labor for completion, Therefore, total annual direct labor hours are 96,300 or [1.5 hrs, x (54,00010,200)]. Expected annual manufacturing overhead is 1,562,538 Thus, the predetermined overhead rate is s 16.23 or (S 1,562,538 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. e dry chemical at 390 PSI. Both products require 1.5 hours 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 Drivers Estim ated Overhead Cost Pounds Machine hours Number of parts Number of tests Gallons Pounds Activity Cost Pools Forming Assembling Testing Painting Packing and shipping $66,500 148,800 406,400 54,700 57,838 828,300 s1,562,538 335,000 215,000 35,000 27,000 217,000 165,000 25,500 15,500 3,680 335,000 215,000 Home Commercial 120,000 8,000 52,000 10,000 1,578 120,000 5,258 (a) Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. $12.25.) Total unit cost