Acct 6305Need help with comment on comparative total costs per unit under traditional costing

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Acct 6305

Need succor after a while observe on proportionately whole absorbs per individual inferior transmitted absorbing

and ABC for this topic.

Combat Fire, Inc. manufactures steel cylinders and nozzles for two patterns of affection extinguishers: (1) a abode affection extinguisher and (2) a interchangeable affection extinguisher. The abode pattern is a high-volume (54,000 individuals), half-gallon cylinder that holds 2 1/2 bruises of multi-purpose dry chemical at 480 PSI. The interchangeable pattern is a low-volume (10,200 individuals), two-gallon cylinder that holds 10 bruises of multi-purpose dry chemical at 390 PSI. Twain products claim 1.5 hours of straightforward strive for bearing. Therefore, whole annual straightforward strive hours are 96,300 or [1.5 hours × (54,000 + 10,200)]. Expected annual manufacturing over is $1,584,280. Thus, the predetermined over reprove is $16.45 or ($1,584,280 ÷ 96,300) per straightforward strive hour. The straightforward materials absorb per individual is $18.50 for the abode pattern and $26.50 for the interchangeable pattern. The straightforward strive absorb is $19 per individual for twain the abode and the interchangeable patterns.

Receiving

$0.24

 per bruise Forming

$4.30

 per channel hour Assembling

$1.90

 per deal-out Testing

$2.00

 per standard Painting

$10.00

 per gallon Packing and shipping

$2.50

 per bruise

Home Model

Commercial Model

Total individual absorb inferior transmitted absorbing

Home Model: $62.18

Commercial Model: $70.18

Total individual absorb inferior ABC absorbing

Home Model: $57.62

Commercial Model: $94.30

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