Business, 11.02.2020 18:55 holyturnley

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

Xactive Pathbreaker
Direct materials per unit $ 63.80 $ 50.00
Direct labor cost per unit $ 17.20 $ 12.00
Direct labor-hours per unit 1.4 DLHs 1 DLHs
Estimated annual production and sales 15,000 units 65,000 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 $1,634,000
Estimated total direct labor-hours 86,000 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.

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

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