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	$ 65.60		$ 51.80
Direct labor cost per unit	$ 19.00		$ 13.80
Direct labor-hours per unit	1.4	DLHs	1	DLHs
Estimated annual production and sales	33,000	units	83,000	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	$2,687,360
Estimated total direct labor-hours	129,200	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:

Activity Cost Pools and (Activity Measures)	Estimated Overhead Cost	Expected Activity
		Xactive	Pathbreaker	Total
Supporting direct labor (direct labor-hours)	$ 988,380	46,200	83,000	129,200
Batch setups (setups)	1,008,000	290	190	480
Product sustaining (number of products)	602,240	1	1	2
General factory (machine-hours)	88,740	3,300	8,300	11,600
Total manufacturing overhead cost	$ 2,687,360

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.

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.)

	Xactive	Pathbreaker
Unit product cost

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	Activity Rate
Supporting direct labor		per DLH
Batch setups		per setup
Product sustaining		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.)

	Xactive	Pathbreaker
Unit product cost