Question

Please answer using the only the numbers given in THIS problem.
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)]. Estimated annual manufacturing overhead is $1,581,136. Thus, the predetermined overhead rate is $16.42 or ($1,581,136=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.

Answer 1

Activity	Estimated	Est. use of		Activity Based
Cost pool	Overhead	cost drivers		Rate
Receiving	$      87,100.00	335000	pounds	$             0.26	per pound
Forming	$    154,000.00	35000	mach. Hrs	$             4.40	per mach. Hour
Assembling	$    407,960.00	217000	parts	$             1.88	per part
Testing	$      44,880.00	25500	tests	$             1.76	per test
Painting	$      63,096.00	5258	gallons	$           12.00	per gallon
P&S	$    824,100.00	335000	pounds	$             2.46	per pound
	$ 1,581,136.00