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I'm not sure about my answer on question one but can you help me on this please and thank you. QUESTION 1 Activity Based Costing:
I'm not sure about my answer on question one but can you help me on this please and thank you.
QUESTION 1 Activity Based Costing: Part-1 Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. The company is considering replacing its traditional costing system with an ABC system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs): Estimated Cost Pools and Expected Activity Overhead Activity Measures Cost Xactive Pathbreaker Total Indirect Labour (direct labour-hour or DLH) $797,500 35,000 75,000 110,000 $680,000 250 150 400 Batch setups (setup) Product-sustaining (number of product) $650,000 1 1 2 Other $72,500 NA NA NA Determine the activity rates for all the three activities and fill in the table below. Instruction to input answers: 1. For numeric answers, round to two decimal places and do not use comma as thousand separator. Example: 1023.25 2. If your numeric answer has whole number, use.00 in the end. Example: 1234.00 3. If your answer requires text response, terminology used for answering the question should match the exam question. Example: "machine setup" should be written as "machine-setup" if your question mentions the term as "machine- setup". 4. Insert 0 or NA for spaces that has no answer. Activity Activity Rate Unit of Measure Indirect Labour 7.25 DLH setup Batch setup 1700.00 Product-sustaining 325000.00 number of product Other NA NA Activity Based Costing: Part-2 Use Activity Rates calculated in the previous question (Activity Based Costing - Part1 to answer this question). A new boot, Snow Peak is expected to be introduced next year. The production capacity cannot increase for the plant next year; therefore, expected activity for Indirect Labor and Batch setups will remain the same. To accommodate Snowpeak, 5,000 Indirect Labor and 50 Batch Setups will be transferred from Xactive to Snowpeak. Based on this information, calculate total overhead cost for the three product lines and fill in the following table. Total Overhead Cost Cost Pools Xactive Pathbreaker Snow Peak Indirect Labour (direct labour- hours) Batch setups (setups) Product- sustaining (number of products) TotalStep by Step Solution
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