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Rocky Mountain Corporation makes two types of hiking boots-Xactive and the Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct
Rocky Mountain Corporation makes two types of hiking boots-Xactive and the 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 $ 64.40 $ 17.80 1.4 DLHs 21,000 units Pathbreaker $ 50.60 $ 12.60 1 DLHs 71,000 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 $1,967,840 Estimated total direct labor-hours 100,400 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.) Predetermined overhead rate $ 19.6 per DLH 1-b. 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.) Unit product cost $ Xactive 109.64 Pathbreaker $ 82.8 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: Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Expected Activity Estimated Overhead Cost Xactive Pathbreaker Total $ 707,820 29,400 71,000 100,400 540,000 230 130 360 655,160 2 64,860 2,100 7,100 9,200 1 Total manufacturing overhead cost $ 1,967,840 Determine the activity rate for each of the four activity cost pools. (Round your final answers to 2 decimal places.) A Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory A Activity Rate 7.05 per DLH 1500 per setup 327580 per product 7.05 per MH A A 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
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