3. Contrasting ABC and Conventional Product Costs Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concern- ing these two product lines appear below: Direct materials per unit Direct labor cost per unit Direct labor hours per unit Estimated annual production and sales Xactive $64.80 $18.20 14 DLHS 25,000 units Pathbreaker $51.00 $13.00 1.0 DLHS 75,000 units The company has a conventional costing system in which manufacturing overhead is applied to units hased on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor hours.. $2.200,000 110,000 DLHS Required: 1. Compute the predetermined overhead rate based on direct labor-bours. Using this rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cod pools Total Activity Cost Pools and Activity Measures Supporting direct labor (direct labor hours) Batch setups (setups).... Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost, Estimated Overhead Cost $ 797.500 680,000 650,000 72,500 $2,200,000 Xactive 35,000 250 1 2,500 Expected Activity Pathbreaker 75,000 150 1 7,500 110,000 400 2 10,000 Determine the activity rate for each of the four activity cost pools 3. Using the activity rates and other data from the problem, determine the unit product cost of cach product 4. Explain why the conventional and activity-based cont assignments differ