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 $ 63.80 $ 17.20 1.4 DLHS 15,000 units Pathbreaker $ 50.00 $ 12.00 1 DLHS 65,000 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 $1,634,000 Estimated total direct labor-hours 86,000 DLHS Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. (Round the intermediate calculations and final answer to two decimal places.) Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. (Round the intermediate calculations and final answer to two decimal places.) Predetermined overhead rate per DLH 1-5. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. (Round the intermediate calculations and final answer to two decimal places.) Xactive Pathbreaker Unit product cost 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: Expected Activity 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: Expected Activity Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Estimated Overhead Cost Xactive Pathbreaker $ 580,500 21,000 65,000 360,000 200 100 639,500 54,000 1,500 6,500 Total 86,000 300 8,000 Total manufacturing overhead cost $ 1,634,000 Determine the activity rate for each of the four activity cost pools. (Round your final answers to 2 decimal places.) Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory Activity Rate per DLH per setup per product per MH General factory per MH 3. Using the activity rates and other data from the problem, determine the unit product cost of each product. (Round the intermediate calculations and final answer to two decimal places.) Xactive Pathbreaker Unit product cost
