please answer asap Vaughn Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1)a home fire extinguisher and (2) acommercial 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 ofmulti-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct latior for completion. Therefore, total annual directlabor hours are 96,300 or [1.5 hours x (54,000 + 10,200)]. Estimated annual manufacturing overhead is $1,576,678. Thus, thepredetermined overhead rate is $16.37 or ($1,576,678 + 96,300) per direct labor hour. The direct materials cost per unit is $18.50 forthe home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercialmodels.The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows.Use ofDrivers by ProductEstimated UseEstimatedofActivity Cost PoolsCost DriversOverheadCost DriversHomeCommercialReceivingPounds$90,450335,000215,000120,000FormingMachine hours150,85035,00027,0008,000AssemblingNumber of parts405,790217,000165,00052,000TestingNumber of tests51,00025,50015,50010,000PaintingGallons57,8385,2583,6801,578Packing and shippingPounds820,750335,000215,000120,000$1,576,678Compute the total cost per unit for each product under ABC. (Round answers to 2 decimal places, eg. 12.25.)Home ModelCommercial ModelTotal cost per unit%24$

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Description: please answer asap Vaughn Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1)a home fire extinguisher and (2) acommercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinde

The overhead per unit is calculated as total overhead cost divided by number of units. Total cost =…

Business

Accounting

Drivers by Product Estimated Use Estimated Overhead of Activity Cost Pools Cost Drivers Cost Drivers Home Commercial Receiving Pounds $90,450 335,000 215,000 120,000 Forming Machine hours 150,850 35,000 27,000 8,000 Assembling Number of parts 405,790 217,000 165,000 52,000 Testing Number of tests 51,000 25,500 15,500 10,000 Painting Gallons 57,838 5,258 3,680 1,578 Packing and shipping Pounds 820,750 335,000 215,000 120,000 $1,576,678

Drivers by Product Estimated Use Estimated Overhead of Activity Cost Pools Cost Drivers Cost Drivers Home Commercial Receiving Pounds $90,450 335,000 215,000 120,000 Forming Machine hours 150,850 35,000 27,000 8,000 Assembling Number of parts 405,790 217,000 165,000 52,000 Testing Number of tests 51,000 25,500 15,500 10,000 Painting Gallons 57,838 5,258 3,680 1,578 Packing and shipping Pounds 820,750 335,000 215,000 120,000 $1,576,678

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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