Wimbledon Corporation makes two types of tennis shoes-Challenger and Vapor. Data for the year for each shoe type follow: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Challenger $ 63.90 $ 17.30 1.4 DLHS 16,000 units Vapor $ 50.10 $ 12.10 1 DLHS 66,000 units The company applies manufacturing overhead 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 $1,688,440 88,400 DLHS 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 Cost $ 601, 120 387,500 644,060 55,760 $1,688,440 Expected Activity Challenger Vapor Total 22,400 66,000 88,400 205 105 310 1 2 1,600 6,600 8, 200 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 Req3 Compute the predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Reg 3 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.) Challenger Vapor Unit product cost Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Reg 3 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 DLH Activity Cost Pools Supporting direct labor Batch setups Product sustaining General factory per setup per product per MHR Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 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.) Challenger Vapor Unit product cost
