# Za 5.35A ane 7A a-b Problem 5.JSA - FireOut Inc, manufactures steel cylinders and nozzles for...

###### Question:

Za 5.35A ane 7A a-b Problem 5.JSA - FireOut Inc, manufactures steel cylinders and nozzles for two modes of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire her. The home models volume (54,000 units), half-litre cylinder that holds 2.5 kilograms of multi-purpose dry chemical at 400 PSI (pounds per square inch). The commercial model is a low-volume (9.500 units), two-litre cylinder that holds 10 kilograms of multi-purpose dry chemical at 390 PSI. Both products require 150 hours of direct labour for completion. Therefore, total anual direct labour hours are 95,250 or [1.50 hrs. (54,000 + 9,500). Estimated annual manufacturing overhead $1,524,000. Thus, the predetermined overhead rate is$16.00 or (51,524,000 95,250) per direct labour hour. The direct materials cost per unit is $18.12 for the home model and$26.30 for the commercial model. The direct labour costs $18.46 per for both the home and commercial models 1 esults by Study The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows: Activity Cost Pools Cost Drivers Receiving Kilograms Forming Machine hours Assembling Number of parts Testing Number of tests Painting Packing and shipping kilograms Estimated Estimated Use Estimated Use Overhead of Cost Drivers of Drivers by Product Home Commercial$67,200 JJ6,000 215,000 121,000 151,200 36,000 28,000 8,000 392,400 218,000 165,000 53,000 54,000 27.000 16,000 11,000 52,800 6,000 4,000 2,000 806,400 336,000 215,000 121,000 $1,524,000 utres wers Under traditional product costing, calculate the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product. (Round places, e.g. 15.25.) Products Home Model Commercial Mode Manufacturing Costs Direct materials Direct labour Overhead Total unit cost c alces 15.25 Under ABC, prepare a schedule showing the calculations of the activity based overhead rates (per cost driver). (Round rate per cost driver to other answers to decimal places e.g. 1525.) User Cost Pool T RESOURCES STANDARD VIEW PRINTER VERSION Under ABC, prepare a schedule showing the calculations of the activity-based overhead rates (per cost driver). (Round rate per cost driver to 2 decimal places, e.. 15.25 and other answers to decimal places e.g. 1525.) Est. . 5.35A and 37A a-b Cost Pool HOH Usage Rate Cost Drivers Receiving per kilogram ults by Study Forming per machine hr. Assembly per part Testing per test Painting per litre Packing and shipping$ per kilogram Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Round per unit cost to 2 decimal places, e.g. 15.25 and other answers to decimal places e.g. 1525.) Commercial Activity-based overhead applied Home Receiving-kilograms Forming-machine hours Assembly-number of parts Testing-number of tests Painting-litres Packing and shipping-kilograms Total overhead applied Total units produced Per unit overhead cost
JRCES Testing-number of tests Painting-litres Packing and shipping-lograms Total overhead applied Study Total units produced Per unit overhead cost Calculate the total cost per unit for each product under ABC. (Round answers to 2 decimal places, eg. 15.25.) Home Commercial Per un cost Classify each of the activities as a value-added activity or a non-value-added activity. Receiving Forming Assembling Testing Painting Packing and shipping SAVE FOR LATER SUBMIT Question Attempts: 0 of 2 used

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