Exercise 4-10 Contrasting ABC and Conventional Product Costs (L04-2, LO4-3, LO4-4] Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Xactive 64.70 18.10 1.4 DLHS 24,000 units Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Pathbreaker 50.90 12.90 1 DLHS 74,000 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 $2,141, 240 107,600 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: Estimated Overhead Cost $ 774, 720 643,500 652,460 70,560 $2,141, 240 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 Expected Activity Xactive Pathbreaker Total 33,600 74,000 107,600 145 390 1 2,400 7,400 9,800 245 1 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. Req 1A Req 1B Req 2 Req3 Compute the predetermined overhead rate based on direct labor-hours. Predetermined overhead rate per DLH Req 1A Req 1B Req 2 Req3 Using the predetermined overhead rate and other data from t product. (Round your intermediate calculations and final ansv Xactive Pathbreaker Unit product cost Req 1A Req 1B Req 2 Req 3 Determine the activity rate for each of the four activity cost pool decimal places.) Activity Rate per DLH Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory per setup per product per MHR 000 Req 1A Req 1B Req 2 Req3 Using the activity rates and other data from the problem, dete intermediate calculations and final answers to 2 decimal place Xactive Pathbreaker cost Xactive Pathbreaker Unit product cost