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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

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 $ 64.20 $ 50.40
Direct labor cost per unit $ 17.60 $ 12.40
Direct labor-hours per unit 1.4 DLHs 1 DLHs
Estimated annual production and sales 19,000 units 69,000 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 $1,854,640
Estimated total direct labor-hours 95,600 DLHs

Estimated Overhead Cost Expected Activity
Activity Cost Pools and Activity Measures Xactive Pathbreaker Total
Supporting direct labor (direct labor-hours) $ 664,420 26,600 69,000 95,600
Batch setups (setups) 476,000 220 120 340
Product sustaining (number of products) 653,060 1 1 2
General factory (machine-hours) 61,160 1,900 6,900 8,800
Total manufacturing overhead cost $ 1,854,640

1. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.

2. 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.

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