Rocky Mountain Corporation makes two types of hiking boots—Xactive and Pathbreaker

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Rocky Mountain Corporation makes two types of hiking boots—Xactive and Pathbreaker. Data concerning these two product lines appear below:

 XactivePathbreakerDirect materials per unit$64.60 $50.80 Direct labor cost per unit$18.00 $12.80 Direct labor-hours per unit 1.4DLHs 1DLHsEstimated annual production and sales 23,000units 73,000units

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$2,082,960 Estimated total direct labor-hours105,200 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:

 Estimated Overhead CostExpected ActivityActivity Cost Pools and Activity MeasuresXactivePathbreakerTotalSupporting direct labor (direct labor-hours)$752,180  32,200  73,000 105,200Batch setups (setups) 608,000  240  140 380Product sustaining (number of products) 654,140  1  1 2General factory (machine-hours) 68,640  2,300  7,300 9,600Total manufacturing overhead cost$2,082,960        

the predetermined overhead rate is 19.80 per DLH

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.

a. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product

b. Determine the activity rate for each of the four activity cost pools. (Round your "per DLH" and "per MHR" answers to 2 decimal places.)

c. 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.)