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

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.

cost pools:

Wimbledon Corporation makes two types of tennis shoes -Challenger and Vapor. Data for the year for each shoe type follow: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Challenger $ 65.60 $ 19.00 1.4 DLH3 33,000 units Vapor $ 51.80 $ 13.80 1 DLHS 83,000 units The company applies manufacturing overhead 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 $2,687,360 129,200 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: Estimated Expected Activity Activity Cost Pools and Activity Measures Overhead Cost Challenger Vapor Total Supporting direct labor (direct labor-hours) $ 988, 380 46,200 83,000 129,200 Batch setups (setups) 1,000,000 Product sustaining (number of products) 602, 240 General factory (machine-hours) 88,740 3,300 8,300 11,600 Total manufacturing overhead cost $2,687,360 290 1 190 1 480 2 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