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Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data c appear below oncerning these two product lines Xactive Pathbreaker Direct materials per
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data c appear below oncerning these two product lines Xactive Pathbreaker Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales 64.30 50.50 17.70 12.50 1.4 DLHS 1 DLHS 20,000 units 70,000 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 $1,911,000 98,000 DLHs Estimated total manufacturing overhead Estimated total direct labor-hours 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 Supporting direct labor (direct labor- hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Overhead Cost Xactive Pathbreaker Total 686,000 507,500 28,000 70 98,00 225 125 350 654,500 63,000 1 1 2 7,000 2,000 9,000 $1,911,000 Total manufacturing overhead cost 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 Req 2 Req 3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
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