Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rocky Mountain Corporation makes two types of hiking boots-Xective and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit $

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: George H. Bodnar, William S. Hopwood

11th Edition

0132871939, 978-0132871938

More Books

Students also viewed these Accounting questions

Question

d. In what sports does the person consult?

Answered: 1 week ago

Question

Brief the importance of span of control and its concepts.

Answered: 1 week ago

Question

What is meant by decentralisation?

Answered: 1 week ago