rocky mountain inc 475238
this company make 2 type of boots 1. xactive 2 pathbreaker 1. AXactive boot- selling price per unit = 127.00; direct material per unit= 64.80 direct labor per unit= 18.20 direct labor per hr= 1.4 d4t estimat annual product = 25.000 unit/ path breaker boot- selling price per unit= 89.90; directmaterial per unit = 51.00 direct labor per unit = 13.000 direct labor hr per unit = 1.0 estimate annual product – 75.000/ this company has a traditional cost in which manufacture overhead is applied to unit base on direct labor hrs. daa concerning overhead anddirect labor hrs 4 the upcoming yr/ estimated total overhead=2,200.000 estimated total direct labor hours is 110.000// question compute the product margin 4 the xactive and the patbreaker product under the traditional cost sytem// question / this company is considering replacing it traditional costing system with a active base cost system that would assign it s manufactor overhead to the following 4 active cost and capacity cost- Active— estimated over head cost; expect activity total/ direct labor hrs est overhead cost = 797.500 expect activity xactive boot=35;00 pathbreak = 75,00 total =110.000/ both set up= 680.000 xactive=250 patbreak=150 total=400 / numbers of products= 650;000 estimate activity 1-xactiv/ path breaker=1 total=2 /others = 72.500 total manufacture over head is 2.200.000/ question i need to complete the project margin 4 Xactive boot and pathbreaker product under the actvity base cost system// question i need to prepare comparision of the direct and activity basecost assigment / explain why the traditional and activity base cost assigment are different
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