Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 6 Exercise 4-10 Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4-4] Rocky Mountain Corporation makes two types of hiking boots-Xactive and

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Check my work 6 Exercise 4-10 Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4-4] Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below 2.14 points X 03:08:17 Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 64.90 $ 18.30 1.4 DLHS 26,000 units Pathbreaker $ 51.10 $ 13.10 1 DLHS 76,000 units eBook 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: Print Estimated total manufacturing overhead Estimated total direct labor-hours $2,259, 240 112,400 DLHS References 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) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead Cost $ 820,520 717,500 646,760 74,460 $2,259,240 Expected Activity Xactive Pathbreaker Total 36,400 76,000 112,400 255 155 410 1 1 2 2,600 7,600 10,200 Determine the activity rate for each of the four activity cost pools. I leinn the artist rater and there from the reklam determine the limit rradit carteak erediet Check my work 6 Requirea: 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: 2.14 points X 03:08:05 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 $ 820,520 717,500 646,760 74,460 $2,259,240 Expected Activity Xactive Pathbreaker Total 36,408 76,000 112,400 255 155 410 1 2 2,600 7,600 18,280 1 eBook 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. Print Complete this question by entering your answers in the tabs below. References Req1A Req 1B Reg 2 Reg 3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Req1A Reg 18 > Check my work 6 Requirea: 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: 2.14 points X 03:07:59 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 $ 820,520 717,500 646,760 74,460 $2,259,240 Expected Activity Xactive Pathbreaker Total 36,408 76,000 112,400 255 155 410 1 2 2,600 7,600 18,280 1 eBook 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. Print Complete this question by entering your answers in the tabs below. References Req 1A Reg 1B Reg 2 Reg 3 Determine the activity rate for each of the four activity cost pools. (Round your "per DLH" and "per MHR" answers to 2 decimal places.) Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory Activity Rate per DLH per setup per product per MHR Check my work 6 Requirea: 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: 2.14 points 8 03:07:55 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 $ 820,520 717,500 646,760 74,460 $2,259,240 Expected Activity Xactive Pathbreaker Total 36,408 76,000 112,400 255 155 410 1 2 2,600 7,600 18,280 1 eBook 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. Print Complete this question by entering your answers in the tabs below. F References Req 1A Reg 1B Reg 2 Reg 3 Using the activity rates 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

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

Step: 3

blur-text-image

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 Art Of Safety Auditing A Tutorial For Regulators

Authors: Sasho Andonov

1st Edition

0367351080, 978-0367351083

More Books

Students also viewed these Accounting questions