Rocky Mountain Corporation makes two types of hiking boots-Xactive and the Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive Pathbreaker $ 65.00 $ 51.20 $ 18.40 $ 13.20 1.4 DLHS 1 DLHS 27,000 units 77,000 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: $2,318,960 Estimated total manufacturing overhead Estimated total direct labor hours 114,800 DLHS Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. (Round the intermediate calculations and final answer to two decimal places.) Predetermined overhead rate DLH $ per 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. (Round the intermediate calculations and final answer to two decimal places.) Xactive Pathbreaker Unit product cost 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: Activities and Activity Measures Supporting direct labor (direct labor- hours) Batch setups (setups) Product sustaining (number of products) General factory (machine hours) Estimated Expected Activity Overhead Cost Xactive Pathbreaker Total 37,800 $ 843,780 77,000 114.800 756,000 260 160 420 642,740 2 76,440 2.700 7700 10,400 1 Total manufacturing overhead cost $2,318,960 Determine the activity rate for each of the four activity cost pools. (Round your final answers to 2 decimal places.) Activity Cost Pools Activity Rate Supporting direct labor $ per DLH Batch setups per setup Product sustaining per product General factory per MH 37,800 114. 77,000 $ 843,780 756,000 260 160 420 Supporting direct labor (direct labor- hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) 642,740 1 2 10,400 76.440 2,700 7,700 Total manufacturing overhead cost $2,318,960 Determine the activity rate for each of the four activity cost pools. (Round your final answers to 2 decimal places.) Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory A A A A Activity Rate per DLH per setup per product per MH 3. Using the activity rates and other data from the problem, determine the unit product cost of each product. (Round the intermediate calculations and final answer to two decimal places.) Xactive Pathbreaker Unit product cost
