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Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below Xactive Pathbreaker Direct materials per unit
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below Xactive Pathbreaker Direct materials per unit $65.10 551.30 Direct labor cost per unit $ 18.50 $ 13.30 Direct labor-hours per unit 1.4 DLHS Estimated annual production and sales 28,000 units 78,000 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 $2,379,160 117,200 DLHS Required: 1-a Compute the predetermined overhead rate based on direct labor-hours 1-6. Using the predetermined overhead rate and other data from the problem datam ..... 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 assig manufacturing overhead to the following four activity cost pools: 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 Expected Activity Estimated Overhead - Cost Xactive Pathbreaker Total 867,280 39,200 78,000 117,200 795,500 265 165 430 637,940 78,440 2,800 7,809 10,600 $ 2,379,168 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 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Req 18 > Heq Req 1B Reg 2 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 NOIA Red IB Rea 2 Req3 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 Rate per DIH Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory Der setup per product 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
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