Rocky Mountain Corporation makes two types of hiking bootsXa

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

Solution

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