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: Xactive Pathbreaker Direct materials per unit

image text in transcribed
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker Data concerning these two product lines appear below: Xactive Pathbreaker Direct materials per unit $ 63.80 $ 50.00 Direct labor cost per unit $ 17.20 $ 12.00 Direct labor-hours per unit 1.4 DLH 1 DLHS Estimated annual production and sales 15,000 units 65,000 unita 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 $1,634,000 Estimated total direct labor-hours 86,000 DLHS Required: 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: Estimated Expected Activity Activity Cost Poola and (Activity Measures) Overhead cost Xactive Pathbreaker Total Supporting direct labor (direct labor-hours) $ 580,500 21,000 65,000 86,000 Batch setups (setups) 360,000 100 Product sustaining (number of products) 639,500 General factory (nachine-hours) 54,000 1,500 Total manufacturing overhead cont $1,634,000 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 200 1 1 6,500 300 2 8.000 Complete this question by entering your answers in the tabs below. Req1A Reg 18 Reg 2 Req Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rato per DLH Reu1 Reg 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

Sound Investing, Chapter 10 - One-Time Charges And Other Format Fakes

Authors: Kate Mooney

2nd Edition

0071719326, 9780071719322

More Books

Students also viewed these Accounting questions