FireOut, Inc. manufactures steel cylinders and nozzles for two models of fire ex

Question

FireOut, 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 1 model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multipurpose 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 hrs

Explanation / Answer

Under traditional product costing, compute the total unit cost of both products.(Round your answers to 2 decimal places, e.g. 20.25.)

(1) a home fire extinguisher and

total unit cost = 18.50 + 19 + 23.26 = $60.76

(2) a commercial fire extinguisher.

total unit cost = 26.50 + 19 + 23.26 = $68.76

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