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...
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