Exercise 4-10 Contrasting ABC and Conventional Product Costs (L04-2, LO4-3, L04-4) Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct Labor cont per unit Direct labor-hours per unit Estimated annual production and salen Xactive $ 65.20 $18.60 1.4 LH 29,000 units Pathbreaker $ 51.40 $13.40 DERS 79.000 unit 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: Intimated total manufacturing overhead Intimated total direct labor-hours $2,439,840 119,600 DL Required: 1-a. Compute the predetermined overhead rate based on direct labor hours. 1-6. 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 notivity Measures Supporting direct labor direct labox-hours) Batch setups (setupe) Product sustaining number of products General factory machine-hours) Total manufacturing overhead coat Estimated Overhead Cost $ 891,020 836,000 632,360 30.450 $2.439,840 Expected Ativity Xactive Pathbreaker Total 40,600 79,000 119,600 270 170 440 1 1 2.900 7.900 10.000 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 LA Reg 1B Reg 2 Req3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Prodotorinod overhead rate per DLH Req 18 ) 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 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 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 Reg 2 R&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
