Slippy Trek Corporation makes two types of water boots - XtraDry and XtraTract. Data concerning...
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Slippy Trek Corporation makes two types of water boots - XtraDry and XtraTract. Data concerning these two product lines appear below: 5 The company has a conventional costing system in which manufacturing overhead is applied to units based on direct laborhours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: 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 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools Determine the activity rate for each of the 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 based on that new information
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