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6 Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive Pathbreaker $ 64.30 $ 50.50
6 Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive Pathbreaker $ 64.30 $ 50.50 $ 17.70 $ 12.50 1.4 DLHS 1 DLHS 20,000 units 70,000 units 1.42 points The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Book Print Estimated total manufacturing overhead Estimated total direct labor-hours References $1,911,000 98,000 DLHS Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-6. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of coch 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 cost pools: Estimated Expected Activity Activity Cost Pools and Activity Measures Overhead Cost Xactive Pathbreaker Total Supporting direct labor (direct labor-hours) $ 686,000 28,000 70,000 98,000 batch setups (setups) 507,500 225 125 350 produit sustaining (number of products) 654,500 1 1 eneral factory (machine-hours) 63,000 2,600 7,000 9,000 Total manufacturing overhead cost $1,911,000 2. 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 each product
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