Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreak

Question

Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below 65.50 $ 18.90 S 51.70 13.70 Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales 14 DLHs 1 DLHs 82,000 units 32,000 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 $2 624,760 Estimated total direct labor-hours 126 800 DLHs Required 1-a. Compute the predetermined overhead rate based on direct labor-hours (Round the intermediate calculations and final answer to two decimal places. 0 Type here to search

Explanation / Answer

1-a. Predetermined overhead rate = $2624760/126800 = $20.70 per DLH

1-b.

2.

3.

Xactive Pathbreaker Direct materials 65.50 51.70 Direct labor 18.90 13.70 Manufacturing overhead 28.98 20.70 (1.4 x $20.70) (1 x $20.70) Unit product cost $ 113.38 86.10

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