Exercise 4-10 Contrasting ABC and Conventional Product Costs [LO4-2, L04-3, LO4-4) 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 cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 63.90 $ 17.30 1.4 DLHS 16,000 units Pathbreaker $ 50.10 $ 12.10 1 DLHS 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 Estimated total direct labor-hours $1,688,440 88, 400 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 Expected Activity Activity Cost Pools and Activity Measures Overhead Cost Xactive Pathbreaker Total Supporting direct labor (direct labor-hours) $ 601,120 22,400 66,000 Batch setups (setups) 387,500 205 105 Product sustaining (number of products) 644,060 General factory (machine-hours) 6,600 8,200 Total manufacturing overhead cost $1,688,440 88,400 310 2 1 1 1,600 55, 760 es IP 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