Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines ppear below Direct materials per uit Direct labor

image text in transcribed
image text in transcribed
image text in transcribed
ocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines ppear below Direct materials per uit Direct labor cost per unit Direct labor-hours per wat Estimated annual production and sales Xactive $ 65.10 $19.50 1. LES 28.000 units Pathbreaker $ 51.30 $ 13.30 DLHE 78.000 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 Eatinated total sau acturing overhead $2.979. 160 Estimated total direct labor-hout 117.200 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: Entiated Expected Activa Activity Cout Pool and civity Meats) Overhead Coat Xactive Patreker Total Supporting direct labor (direct labor-hours) $ 867.280 39. 200 70.000 1170200 Batch wetup (setup) 795.500 265 166 430 Product sustaning number of products) 637.040 1 1 2 General factory (nachine-hout) 78,440 2.000 7.800 10.600 Total anufacturing overhead cout $ 2, 379.100 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. Req IA Reg 18 Reg 2 Reg 3 Compute the predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal places) Prodotermined overhead rato per DLH Ren la Reg 10 > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Using the predetermined overhead rate 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 Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Flea 2 Reg 3 Determine the activity rate for each of the four activity cost pools, (Round your "per DLH" and "per MHR" answers to 2 decimal places.) Activity Cost Pools Activity Rate Supporting direct labor Batch setups per setup Product sustaining per product General factory por MHR per DLH

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Message Brand And Dollars Auditing Marketing Operations

Authors: J. Mike Jacka, Peter R. Scott

1st Edition

163454000X, 9781634540001

More Books

Students also viewed these Accounting questions

Question

Describe the nature of negative messages.

Answered: 1 week ago