Solution 1a:
Predetermined overhead rate = Estimated overhead / Estimated direct labor hours
= $2,439,840 / 119600 = $20.40 per DLH
Solution 1b:
Computation of unit product cost - Traditional costing | ||
Particulars | Xactive | Pathbreaker |
Direct material per unit | $65.20 | $51.40 |
Direct labor per unit | $18.60 | $13.40 |
Manufacturing overhead cost per unit (Direct labor hour per unit * Overhead rate per direct labor hour) | $28.56 | $20.40 |
Unit Product Cost | $112.36 | $85.20 |
solution 2:
Determination of activity rate for each activity & allocation of overhead | ||||||||
Activity | Estimated Overhead Cost | Activity Base | Usage of Activity Base | Activity Rate | Xactive | Pathbreaker | ||
Usage | Allocated Costs | Usage | Allocated Costs | |||||
Supporting direct labor cost | $891,020.00 | Direct Labor hours | 119600 | $7.45 | 40600 | $302,470.00 | 79000 | $588,550.00 |
Batch Setups | $836,000.00 | Setups | 440 | $1,900.00 | 270 | $513,000.00 | 170 | $323,000.00 |
Product sustaining | $632,360.00 | Number of products | 2 | $316,180.00 | 1 | $316,180.00 | 1 | $316,180.00 |
General Factory | $80,460.00 | Machine hours | 10800 | $7.45 | 2900 | $21,605.00 | 7900 | $58,855.00 |
Total | $2,439,840.00 | $1,153,255.00 | $1,286,585.00 | |||||
Nos of units | 29000 | 79000 | ||||||
Allocated overhead per unit | $39.77 | $16.29 |
Solution 3:
Computation of unit product cost - Activity Based costing | ||
Particulars | Xactive | Pathbreaker |
Direct material per unit | $65.20 | $51.40 |
Direct labor per unit | $18.60 | $13.40 |
Manufacturing overhead cost per unit | $39.77 | $16.29 |
Unti Product Cost | $123.57 | $81.09 |
Rocky Mountain corporation Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning...
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 Pathbreaker 65.20 $ $1.40 18.60 $ 13.40 1.4 DLHS 1 DLA 29,000 units79,000 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 64.20 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...
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 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 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: $ $ 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...
Thank you 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 laborehours per unit Estimated annual production and sales Xactive $ 64.29 $ 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...
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: Xactive Pathbreaker Direct materials per unit $ 64.90 $ 51.10 Direct labor cost per unit $ 18.30 $ 13.10 Direct labor-hours per unit 1.4 DLHS 1 DLHS Estimated annual production and sales 26,000 units 76,000 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...
CH 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 $ 65.20 $ 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 and...