Exercise 3-10 Contrasting ABC and Conventional Product Costs [LO3-2, LO3-3, LO3-4] Rocky Mountain Corporation makes two types of hiking bootsXactive and Pathbreaker. Data concerning these two product lines appear below:

Exercise 3-10 Contrasting ABC and Conventional Product Costs Lo3-2, LO3-3, LO3-4] Rocky Mountain Corporation makes two types of hiking boots Kactive and Pathbreaker. Data concerning these two product lines appear below. Xactive Pathbreaker 63.90 50.10 Direct materials per unit 17.30 12.10 Direct labor cost per unit 1 DLHs 1.4 DLHs Direct labor-hours per unit Estimated annual production and sales 16,000 units 66,000 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 $1,688,440 88,400 DLHs Estimated total direct labor-hours Required 1-a. Compute the predetermined overhead rate based on direct labor-hours. (Round the intermediate calculations and final answer to two decimal places.) Predetermined overhead rate per DLH