Rocky Fountain Corporation makes two types of fountains-Solar and Electric. Dats concerning these two product...
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Rocky Fountain Corporation makes two types of fountains-Solar and Electric. Dats concerning these two product lines appear below: Solars are more complex to manufocture than Electrics and each unit requires more time on the special equipment. The company has a comventional costing system in which manufacturing overhead is applied to units based on direct lobor-hours. Dath coneomina manufacturita overtiead and direct tabor-hours for the upcpming year appear below: 1a. Compute the predetermined overhead rate based on direct labor-hours. 16. Using the predetermined overhead rate and other dota from the problem, determine the unit product cost cl cach product. 2. The company is considering replacing its cohventionat costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools: 3. Using the activity rates and other data from the problem, determine the unit product cost of each product. 4. Assuming the new cost information is more accurate, what management decisions might change bosed on that new information
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