Answered step by step
Verified Expert Solution
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 Xactive
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 $ 63.80 Fathbreaker Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ 17.20 1.4 DLS 15,000 units $ 50.00 5.12.00 1 DIH 65,000 unita 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 $1,634,000 86,000 DLH 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: 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 Cont $ 580,500 Determine the activity rate for each of the four activity cost pools. 360,000 639,500 54,000 $ 1,634,000 Expected Activity Total 86,000 300 2 Xactive Pathbreaker 21,000 65,000 200 100 2 1 1,500 6,500 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. ,000 Req 1A Req 18 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 Req 18>
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started