Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below. Direct materials per unit Xactive

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below. Direct materials per unit Xactive $64.80 Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ 18.20 1.4 DLHS 25,000 units Pathbreaker $51.00 $ 13.00 1.0 DLHS 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) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead Cost Expected Activity $797,500 680,000 650,000 Xactive Pathbreaker 35,000 75,000 Total 250 1 2,500 150 1 7,500 110,000 400 2 10,000 Determine the activity rate for each of the four activity cost pools. 72,500 $ 2,200,000 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 18 Req 2 Req 3 Compute the predetermined overhead rate based on direct labor-hours. Predetermined overhead rate per DLH Reg 1A Req 1B >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A User Perspective

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

6th Canadian Edition

470676604, 978-0470676608

More Books

Students also viewed these Accounting questions

Question

Create a flow chart of a product for the manufacturing process.

Answered: 1 week ago