Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting HW, pls help! Question 6 Check my work Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product

Accounting HW, pls help! Question 6
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Check my work Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Xactive $ 65.00 $18.40 Pathbreaker $51.20 $13.20 Estinated annual production and sales 1.4 DE 27,000 units 1 DENG 77,000 units 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: Estimated total manufacturing overhead Estimated total direct labor-hours $2,318,960 114,800 DIN Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead 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 cost pools: Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) Expected Activity Pathbreaker 77,000 Xactive 37,800 260 Estimated Overhead Cost $ 843,780 756,000 642,740 76,440 Total 114,800 160 420 Batch setups (setups) 1 1 2 Product sustaining (number of products) General factory (nachine-hours) 2,700 7,700 10,400 $ 2,318,960 Total manufacturing overhead cost 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. Estimated Overhead Cost Xactive Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Pathbreaker Total $ 843,780 37,800 260 77,000 160 114,800. 420 Product sustaining (number of products) General factory (machine-hours) 756,000 642,740 76,440 1 1 2 2,700 7,700 10,400 Total manufacturing overhead coat $ 2,318,960 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. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Reg 1A Req 1B > Expected Activity Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. (Round your intermediate calculations and final answers to 2 decimal places.) Xactive Pathbreaker Unit product cost Req 2 > per DLH per setup per product per MHR

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Ascendancy Of Finance

Authors: Joseph Vogl, Simon Garnett

1st Edition

1509509305, 978-1509509300

More Books

Students also viewed these Finance questions