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Rocky Mountain Corporation makes two types of hiking boots-Xective and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit $
Rocky Mountain Corporation makes two types of hiking boots-Xective and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit $ Xactive 65.38 Pathbreaker $ 51.50 Direct labor cost per unit $ 18.78 $ 13.50 Direct labor-hours per unit Estimated annual production and sales 1.4 DLH 38,888 units 1 DLMS 80,000 units The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Dats concerning manufacturing overhead and direct labor-hours for the upcoming year appear below. Estimated total manufacturing overhead Estimated total direct labor-hours $2,581,080 122,088 DLHS Required: 1-6. 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: 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 Estimated Overhead Cost $ 915,888 877,588 626,000 Xactive 42,000 275 Expected Activity Pathbreaker Total 80,000 122,000 175 458 2 82,580 $2,501,000 3,000 8,000 11,800 Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other dists from the problem, determine the unit product cost of each product Complete this question by entering your answers in the tabs below. Rg 1A Req 18 2 Req 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 Unit product cost Pathbreaker
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