3. prepare a quantitative comparison of the traditional and activity bassed cost assignments

Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 126.00 $ 63.20 $ 11.70 1.3 DLA 21,000 units Pathfinder $ 91.00 $ 51.00 $ 9.00 1.0 DLRS 75,000 unite The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. D concerning manufacturing overhead and direct labor-hours for the upcoming year appear below. Estimated total manufacturing overhead Estimated total direct labor-houro $2,250,600 102,300 DLHO Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 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 id capacity costs): Activities and Activity Measures Supporting direct labor direct labor-hours) Batoh sotupo (Betup Product wutaining number of producto) Other Total manufacturing overhead cool Estimated Overhead Coat $ 767.250 722,000 670,000 91,350 $2,250.600 Expected Activity Xtreme Pathfinder Total 27,300 75,000 102.300 210 170 3B0 2 2 2 NA NA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system ... Prey 1 of 4 Next >