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Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct labor
Rocky Mountain Corporation makes two types of hiking boots-Xactive and 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 $ 64.80 Pathbreaker $ 51.00 $ 18.20 $ 13.00 1.4 DLHS 1.0 DLHS 25,000 units 75,000 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 Estimated total direct labor- hours Required: $ 2,200,000 110,000 DLHS 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) Supporting direct labor (direct labor-hours) Batch setups (setups) Estimated Overhead Expected Activity Cost Xactive Pathbreaker Total $797,500 35,000 75,000 110,000 680,000 250 150 400 Product sustaining (number of products) 650,000 1 1 2 General factory (machine-hours) 72,500 $ 2,500 7,500 10,000 Total manufacturing overhead cost 2,200,000 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. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Compute the predetermined overhead rate based on direct labor-hours. Predetermined overhead rate per DLH < Req 1A Req 1B > 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 1A Req 1B Req 2 Req 3 Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. Unit product cost Xactive Pathbreaker < Req 1A Req 2 > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 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 Supporting direct labor Batch setups Product sustaining General factory Activity Rate per DLH per setup per product per MHR < Req 1B Req 3 > 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 1A Req 1B Req 2 Req 3 Using the activity rates and other data from the problem, determine the unit product cost of each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Xactive Pathbreaker Unit product cost < Req 2 Req 3 > Show less
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