Rocky Mountain Corporation makes two types of hiking bootsXactive and Pathbreaker. Data concerning these two product lines appear below:

Xactive Pathbreaker

Direct materials per unit $ $64\mathrm{.}40$ $ $50\mathrm{.}60$

Direct labor cost per unit $ $17\mathrm{.}80$ $ $12\mathrm{.}60$

Direct labor$-$hours per unit $1\mathrm{.}4$ DLHs $1$ DLHs

Estimated annual production and sales $21,000$ units $71,000$ 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:

Estimated total manufacturing overhead $$1,967,840$

Estimated total direct labor$-$hours $100,400$ 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:

Activity Cost Pools and $($Activity Measures$)$ Estimated Overhead Cost Expected Activity

Xactive Pathbreaker Total

Supporting direct labor $($direct labor$-$hours$)$ $ $707,82029,40071,000100,400$

Batch setups $($setups$)540,000230130360$

Product sustaining $($number of products$)655,160112$

General factory $($machine$-$hours$)64,8602,1007,1009,200$

Total manufacturing overhead cost $ $1,967,840$

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.