Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage 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 Estimated annual production and sales Xactive $ 64.10 $17.50 1.4 DLHS 18,000 units Pathbreaker $ 50.30 $ 12.30 1 DLHS 68,000 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: ces Estimated total manufacturing overhead Estimated total direct labor-hours $1,798,760 93,200 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 $ 643,080 445,500 650,840 59,340 $1,798,760 Expected Activity Xactive Pathbreaker Total 25, 200 6 8,000 93,200 215 115 330 2 1,800 6,800 8,600 1 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Req 1A Req 1B Req 2 Req3 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 1A Req 2 > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Req3 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 Determine the activity rate for each of the tour 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. nces Req 1A Req 1B Req 2 Req3 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

Principles Of Financial Accounting Chapters 1 To 18

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

12th Edition

9781118978740

More Books

Students also viewed these Accounting questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago