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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
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 $ 64.00 $17.40 Pathbreaker $ 50.20 1.4 DLHS 17,000 units $ 12.20 1 DLHS 67,000 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: $1,743,360 90,800 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). Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead Cost $ 621,980 416,000 Xactive 23,800 Expected Activity Pathbreaker 67,000 Total 90,800 210 110 320 647,840 1 1 2 57,540 1,700 6,700 8,400 $1,743,360 Complete this question by entering your answers in the tabs below. S Req 1A Req 1B Req 2 Req 3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 de Predetermined overhead rate per DLH 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. (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost Xactive Pathbreaker Req 1A Req 1B Req 2 Req 3 Determine the activity rate for each of the four activity cost pools. ( decimal places.) Activity Cost Pools Supporting direct labor Product sustaining Batch setups Activity Rate per DLH per setup per product General factory per MHR Using the activity rates and other data from the problem, determine the unit product cost of each product. (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost Xactive Pathbreaker
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