Business, 09.02.2021 03:00, Isabelcastillox9096

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

Direct materials per unit$63.80 $50.00

Direct labor cost per unit$17.20 $12.00

Direct labor-hours per unit 1.4DLHs 1DLHs

Estimated annual production and sales 15,000units 65,000units

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$1,634,000

Estimated total direct labor-hours86,000DLHs

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.

Answers: 1

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