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Check my work 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
Check my work 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. Direct materials per unit Xactive $ 64.50 $ Direct labor cost per unit $ 17.90 $ Pathbreaker 50.70 12.70 Direct labor-hours per unit Estimated annual production and sales. 1.4 DLHS 22,000 units 1 DLHS 72,000 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 $2,025,160 102,800 DLHS 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 $ 729,880 573,500 655,040 Expected Activity Xactive 30,800 Pathbreaker Total 72,000 102,800 235 1 135 1 370 2 66,740 $2,025,160 2,200 7,200 9,400 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 18 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 Req 1B > 4 Req 1A Req 18 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.) Unit product cost Xactive Pathbreaker < Req 1A Req 2 > Req 1A Req 18 Req 2 Req 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 Complete this question by entering your answers in the tabs below. Req LA Req 18 Req 2 Req 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 Unit product cost Pathbreaker
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