Exercise 4-10 (Algo) Contrasting ABC and Conventional Product Costs (L04-2, L04-3, L04-4) Rocky Mountain Corporation makes two types of hiking boots --Xactive and Pathbreaker. Data concerning these two product lines appear below Xactive Pathbreaker Direct materials per unit $ 50.50 Direct labor cost per unit $ 12.50 Direct labor-hours per unit 1.4 DLHS Estimated annual production and sales 20,000 units 70,000 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: $ 64.30 $ 17.70 1 DLHS Estimated total manufacturing overhead $1,911,000 Estimated total direct labor-hours 98,00 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 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: Estimated Activity Cost Pools and Activity Measures) Expected Activity Overhead Cost Xactive Pathbreaker Total Supporting direct labor (direct labor-hours) $ 686,000 28,eee 70, eee 98,eee Batch setups (setups) 507,500 225 125 350 Product sustaining (number of products) 654,500 1 General factory (machine-hours) 63, eee 2,000 7.ee 9,000 Total manufacturing overhead cost $ 1,911,600 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 1 2 Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2 Req3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places) Predetermined overhead rato $ 19.50 per DLH 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 Reg 2 Reg 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 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. Reg 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 Activity Rate Supporting direct labor per DLH Batch setups per setup Product sustaining per product General factory per MHR 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 Reg 1B Reg 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
