Exercise 4-10 Contrasting ABC and Conventional Product Costs [LO4-2, 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 materiale per unit Direct Labor cont per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 64.10 $17.50 1.4 18,000 units Pathbreaker $50.30 $ 12.30 1 68,000 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 $1,798,760 93,200 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 control and Activity Measures Supporting direct labor direct labor-hours) Bateh setiap tupa) Product sustaining number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead cost 6 643,089 445,500 650,840 59.340 $1.798,760 Expected Activity Xactive Pathbreaker Total 25,200 68,000 93,200 215 115 1 1 2 1,800 6.800 8,600 330 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: 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 Estimated Overhead Cost $ 643,080 445,500 650,840 59,340 $1,798,760 Expected Activity Xactive Pathbreaker Total 25,200 68,000 93,200 215 115 330 1 1 2. 1,800 6,800 8,600 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 Complete this question by entering your answers in the tabs below. Req1A Reg 18 Reg 2 Reg 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
