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 1.4 DLHS 17,000 units Pathbreaker $ 50.20 $ 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 $1,743,360 90,800 DLHS Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-5. 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 Pools and Activity Measures Overhead Cost Xactive Pathbreaker Total Supporting direct labor (direct labor-hours) 621,980 23,800 Batch setups (setups) 416,000 $ 67,000 110 90,800 320 210 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 Pools and Activity Measures Overhead Cost Xactive Pathbreaker Total Supporting direct labor (direct labor-hours) $ 621,980 23,800 67,000 90,800 Batch setups (setups) 416,000 210 110 Product sustaining (number of products) 647,840 2 General factory (machine-hours) 57,540 1,700 6,700 8,400 Total manufacturing overhead cost $1,743,360 320 1 1 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. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 6 Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost $1,7 Determine the activity rate for each of the four activity cost pools 3. Using the activity rates and other data from the problem, dete Complete this question by entering your answers in the tabs bel Req 1A Req 1B Reg 2 Req3 Using the predetermined overhead rate and other data from the pro product. (Round your intermediate calculations and final answers to Xactive Pathbreaker Unit product cost
