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question archive Rocky Mountain Corporation makes two types of hiking boots Xactive and the Pathbreaker

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

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Rocky Mountain Corporation makes two types of hiking boots Xactive and the Pathbreaker. Data concerning these two product lines appear below:
  Xactive Pathbreaker
  Direct materials per unit        $ 64.60          $ 50.80  
  Direct labor cost per unit        $ 18.00          $ 12.80  
  Direct labor-hours per unit   1.4 DLHs   1.0 DLHs
  Estimated annual production and sales   23,000 units         73,000 units
 

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-hours 105,200 DLHs
 
Required:
1-a. Compute the predetermined overhead rate based on direct labor-hours.
  Predetermined overhead rate   $  per DLH

   

1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
  Xactive Pathbreaker
  Unit product cost $    $   
 
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:
  Activities and Activity Measures Estimated
Overhead Cost
Expected Activity
     
Xactive Pathbreaker Total
  Supporting direct labor (direct labor-hours) $ 752180    32200    73,000    105,200   
  Batch setups (setups)   608,000    240    140    380   
  Product sustaining (number of products)   654,140    1    1    2   
  General factory (machine-hours)   68,640    2,300    7,300    9,600   
           
  Total manufacturing overhead cost $ 2,082,960         
           
 
  Determine the activity rate for each of the four activity cost pools.(Round your answers to 2 decimal places.)
  Activity Cost Pools Activity Rate
  Supporting direct labor $ per DLH
  Batch setups $ per setup
  Product sustaining $ per product
  General factory $ per MH
 
3.

Using the activity rates and other data from the problem, determine the unit product cost of each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

  Xactive Pathbreaker
  Unit product cost $    $   
 

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