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2 Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below. 10 points Xtreme

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2 Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below. 10 points Xtreme Pathfinder Selling price per unit $123.00 $ 86.00 Direct materials per unit $ 63.80 $ 50.00 Direct labor per unit $ 10.80 $ 9.00 Direct labor-hours per unit 1.2 DLHS 1. DLHS Estimated annual production and sales 27,000 units 74,000 units eBook Hint The company has a traditional 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. Reference Estimated total sanufacturing $2,340,800 overhead Estimated total direct labor- hours 106,400 DLHS Required Compute the product margins for the Xtreme and the finder products under the company's traditional costing system 2 The company is considering replacing its traditional costing system with an aty based costing system that would assign its manufacturing overhead to the following four activity cost pools the other cost pool includes organization sustaining costs and de capacity cost Estimated Expected Activity Activities and Activity Overhead Measures Cost Supporting direct labor Xtreme Pathfinder Total direct laber-hours) $ 691,600 32,400 74,000 106,400 Batch setups (setups) 900,000 270 Product sustaining number of 230 500 products) 700,000 1 1 2 Other 49,200 NA Total manufacturing overhead NA NA cost $2,340,000 Compute the product margins for the Xtreme and the Povinder products under the activity based costing system 2. Preparate companion of the raditional and activity based cost assignments Complete this question by entering your answers in the tabs below. Required Required Required 1 2 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount) Show less Pathfinder Total Product margin 5 Required 2 > N 10 points Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfindet. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $123.00 $ 86.00 Direct materials per unit $ 63.80 $ 50.00 Direct labor per unit $ 10.80 $9.00 Direct labor-hours per 1.2 DLHS 1.0 DLHS unit Estimated annual production and sales 27,000 units 74,000 units eBook 0 Hint The company has a traditional 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 Reference Estimated total manufacturing overhead Estimated total direct labor hours $2,340,800 106,400 DLHS Required: 1 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing 2. The company is considering replacing its traditional costing system with an activity based costing system that would assign its manufacturing overhead to the following four activity cost pool the other cost pool includes organization sustaining costs and ide capacity costs Estimated Expected Activity Activities and Activity Overhead Measures Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 691,600 32,400 74,000 106,488 Batch setups (setups) 900,000 270 230 See Product sustaining number of products) 700,000 1 1 2 Other 49,200 NA NA NA Total manufacturing overhead cost $2,340,880 Cost Compute the product margins for the tree and the Pathfinder products under the activity based costing system 3. Prepare the comparison of the traditional and activity-based cost assignments Complete this question by entering your answers in the tabs below. Required Required Required 1 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin $ Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Cost Xtreme Pathfinder Total $ 691,600 32,400 74,000 106,400 900,000 270 230 500 700,000 1 1 2 49,200 NA NA NA $2,340,800 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required Required Required 2 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage answers to 1 decimal place.) Show less Xtreme Pathfinder Total % of % of Amount Total Amount Amount Total Traditional Cost System Amount Amount % % % % % Total cost assigned to % products 0 $ 0 $ Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % % Indirect costs % % % $ % % % $ Total cost assigned to products Costs not assigned to products: 0 0 $ 0 Total cost $

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