Under traditional product costing, compute the total unit cost of each product. **(Round answers to 2 decimal places, e.g., 12.50.)**| | Home Model | Commercial Model ||-------------------------|------------|------------------|| **Total unit cost** | $ | $ | **Combat Fire, Inc.: Cost Analysis for Fire Extinguisher Models****Product Overview:**Combat Fire, Inc. produces two types of fire extinguishers:1. **Home Model:** - High volume: 54,000 units - Half-gallon cylinder - Holds 2.5 pounds of multi-purpose dry chemical at 480 PSI2. **Commercial Model:** - Low volume: 10,200 units - Two-gallon cylinder - Holds 10 pounds of multi-purpose dry chemical at 390 PSI**Manufacturing Costs:**- Both models require 1.5 direct labor hours for completion.- Total annual direct labor hours: 96,300- Estimated annual manufacturing overhead: $1,583,096- Predetermined overhead rate: $16.44 per direct labor hour**Direct Material and Labor Costs:**- Direct material cost per unit: $18.50 for home model, $26.50 for commercial model- Direct labor cost: $19 per unit for both models**Activity-Based Costing:**The company's managers identified six activity cost pools and their corresponding cost drivers:| **Activity Cost Pools** | **Cost Drivers** | **Estimated Overhead** | **Estimated Use of Cost Drivers** | **Home** | **Commercial** ||---------------------------|------------------|------------------------|---------------------------------|----------|---------------|| Receiving | Pounds | $80,400 | 335,000 pounds | 215,000 | 120,000 || Forming | Machine hours | $145,950 | 35,000 hours | 27,000 | 8,000 || Assembling | Number of parts | $414,470 | 217,000 parts | 165,000 | 52,000 || Testing | Number of tests | $55,080 | 25,500 tests | 15,500 | 10,000 || Painting | Gallons | $63,096 | 5,258 gallons | 3,680 | 1,578 || Packing and shipping | Pounds | $824,100 | 335,000 pounds | 215,000 | 120,000 |- **Total

Name: Under traditional product costing, compute the total unit cost of eac
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Description: Under traditional product costing, compute the total unit cost of each product. **(Round answers to 2 decimal places, e.g., 12.50.)**| | Home Model | Commercial Model ||-------------------------|------------|-----------------

Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Answered: Under traditional product costing,…

Business

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Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.50.) Total unit cost $ Home Model $ Commercial Model

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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