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 $ 63.90 $ 17.30 1.4 DLHS 16,000 units Pathbreaker $ 50.10 $ 12.10 1 DLHS 66,000 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 $1,688,440 88,400 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 Overhead Cost $ 601,120 387,500 644,060 55,760 $1,688,440 Expected Activity Xactive Pathbreaker Total 22,400 66,000 88,400 205 105 310 Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost 1,600 6,600 8,200 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. Req 1A Req 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 Reg 1A Req 1B > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req3 Determine the activity rate for each of the four activity cost pools. (Round your "per DLH" and "per MHR" answ decimal places.) Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory Activity Rate per DLH per setup per product per MHR pro z ... Nout Dron 3. Using the activity rates and other data from the problerti, determine the unit product Cost Of each prouuct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Reg 3 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
