Exercise 4-10 (Static) 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 Pathbreaker Direct materials per unit $64.80 $ 51.00 Direct labor cost per unit $18.20 $ 13.00 Direct labor-hours per unit 1.4 LHS Estimated annual production and sales 1.0 DLHS 25,080 units 75, eee 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 $ 2,200,000 Estimated total direct labor-hours 110,000 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) $ 797,500 35,800 75,cee 110,000 Batch setups (setups) 680,000 Product sustaining number of products) 650,000 General factory (machine-hours) 72,500 7.500 10,000 Total manufacturing overhead cost $ 2,200,000 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 250 1 2.500 150 1 400 2 Complete this question by entering your answers in the tabs below. Reg 1A Regle Reg 2 Reg 3 Compute the predetermined overhead rate based on direct labor-hours Prudurmined overhead rate per DLH 250 1 2 Estimated Activity Cost Pools and Activity Measures) Expected Activity Overhead Cost Xactive Supporting direct labor (direct labor-hours) Pathbreaker Total Batch setups (setups) $ 797,500 35,000 75.000 110,000 680,000 150 400 Product sustaining (number of products) 650,000 General factory (machine-hours) 72,500 2,500 7,500 10,000 Total manufacturing overhead cost $ 2,200,000 metermine the activity rate for each of the four activity cost pools. 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 Req3 Using the predetermined overhead rate and other data from the problem, determine le unit product cost of each product. Xactive Pathbreaker Unlt product cost num OT products) General factory (machine-hours) Total manufacturing overhead cost 650,000 72,500 $ 2,200,000 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 proc Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Redhe Req 3 Determine the activity rate for each of the four activity cost pools. (Round your "per DL decimal places.) Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory Activity Rate per DLH per setup per product per MHR Total manufacturing overhead cost $ 2,200, 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 u Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Req 3 Using the activity rates and other data from the problem, determine the unit pr intermediate calculations. Round your answers to 2 decimal places.) Xactive Pathbreaker Unit product cost
