Part 1
Predetermined overhead rate |
$20.30 |
per DLH |
Predetermined overhead rate = Estimated total manufacturing overhead cost / Estimated total direct labor-hours = 2379160/117200 = $20.30 per DLH
Part 1 B
Xactive |
Pathbreaker |
|
Unit product cost |
$112.02 |
$84.90 |
Unit product cost = Direct material cost per unit + Direct labor cost per unit + Manufacturing overhead cost per unit
Xactive |
Pathbreaker |
|
Direct material cost per unit |
65.10 |
51.30 |
Direct labor cost per unit |
18.50 |
13.30 |
Manufacturing OH cost per unit (20.30*1.4); (20.30*1) |
28.42 |
20.30 |
Total unit cost |
$112.02 |
$84.90 |
Part 2
Activity Cost Pools |
Activity Rate |
|
Supporting direct labor |
$7.40 |
per DLH |
Batch setups |
$1850.00 |
per setup |
Product sustaining |
$318970.00 |
per product |
General factory |
$7.40 |
Per MHR |
Activity Cost Pools |
(a) Total Cost |
(b) Total Activity |
(a) ÷ (b) Activity Rate |
|
Supporting direct labor |
867280 |
117200 |
$7.40 |
per DLH |
Batch setups |
795500 |
430 |
$1850.00 |
per setup |
Product sustaining |
637940 |
2 |
$318970.00 |
per product |
General factory |
78440 |
10600 |
$7.40 |
Per MHR |
Part 3
Xactive |
Pathbreaker |
|
Unit product cost |
$123.60 |
$80.74 |
Overhead cost per unit calculation:
Xactive |
Pathbreaker |
|
Supporting direct labor (7.40*39200); (7.40*78000) |
290080 |
577200 |
Batch setups (1850*265); (1850*165) |
490250 |
305250 |
Product sustaining (318970*1); (318970*1) |
318970 |
318970 |
General factory (7.40*2800); (7.40*7800) |
20720 |
57720 |
Total Overhead cost (a) |
1120020 |
1259140 |
Estimated total units (b) |
28000 |
78000 |
Overhead cost per unit (a)/(b) |
$40.00 |
$16.14 |
Xactive |
Pathbreaker |
|
Direct material cost per unit |
65.10 |
51.30 |
Direct labor cost per unit |
18.50 |
13.30 |
Manufacturing OH cost per unit (20.30*1.4); (20.30*1) |
40.00 |
16.14 |
Total unit cost |
$123.60 |
$80.74 |
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product...
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 $ 65.10 $ 51.30 Direct labor cost per unit $ 18.50 $ 13.30 Direct labor-hours per unit 1.4 DLHs 1 DLHs Estimated annual production and sales 28,000 units 78,000 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...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Xactive 65.10 18.50 1.4 DLHS 28,000 units Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Pathbreaker 51.30 13.30 1 DLHS 78,000 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...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 65.10 $10.50 1.4 DLHS 28,000 units Pathbreaker $ 51.30 $ 13.30 1 DLHS 78,000 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...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive 64.20 17.60 1.4 DLHS 19,000 units Pathbreaker 50.40 12.40 1 DLHS 69,000 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...
ter 4 Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Xactive 63.80 17.20 1.4 DLHS 15,000 units Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Pathbreaker 50.00 12.00 1 DLHS 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...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Xactive 63.80 17.20 1.4 DLHS 15,000 units Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Pathbreaker 50.00 12.00 1 DLHs 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...
Rocky Mountain corporation Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product line appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $65.20 $ 18.60 1.4 DLHS 29,000 units Pathbreaker $ 51.40 $ 13.40 1 DLHS 79,000 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...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product line appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 65.70 $ 19.10 1.4 DLHS 34,000 units Pathbreaker $ 51.90 $ 13.90 1 DLHS 84,000 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...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker Data concerning these two product lines appear below Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Xactive 64.80 18.20 1.4 DLHS 25,000 units $ Pathbreaker 51.99 13.ee 1. DLHS 75 ce 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...
Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: $ $ Xactive 65.80 19.20 1.4 DLHS 35,000 units Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales $ $ Pathbreaker 52.00 14.00 1 DLHS 85,000 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...