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Rock Mount Corporation makes two types of hiking boots-Xactive and Pathbreaker Data concerning these two product lines appear below Xactive Pathbreaker Direct materials costs per
Rock Mount Corporation makes two types of hiking boots-Xactive and Pathbreaker Data concerning these two product lines appear below Xactive Pathbreaker Direct materials costs per unit $ 55.00 $ 4500 Direct labor cost per unit $ 16.00 $ 24,00 Direct labor hours per unit 1 DLHS 15 DHE Estimated annual production and sales 30,000 Units 40.000 Units Average labor cost per hour $ 16.00 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 $ 2,070000 Estimated total direct labor-hours 90.000 Required: 1a 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 overhead costs Expected Activity Activity Cost Pools and Activity Measures Xactive Pathbreaker Total Supporting direct labor direct labor-hours) $ 810.000 30.000 60.000 90.000 Batch setups (setups) 5 580.000 250 150 400 Product sustaining number of products) $ 600.000 1 2 General factory machine-hours) $ 80.000 2.500 7,500 10.000 Total manufacturing overhead cost $ 2.070,000 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
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