Question
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
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 pools (the Other cost pool includes organization-sustaining costs and idle capacity costs): Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 526,950 56,100 61,000 117,100 Batch setups (setups) 790,000 440 350 790 Product sustaining (number of products) 400,000 1 1 2 Other 39,550 NA NA NA Total manufacturing overhead cost $ 1,756,500 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.)
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