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 1 Required 2 Required 3 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.) Xtreme Pathfinder % of Total % of Amount Total Amount Amount Total Amount Amount S 1,392,600 S 3,952,000 73.9% S Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products 26.1% 33.0 % 33.0 % 5,344,600 1,134,000 760.000 374,000 635,800 2.402,400 67.0 % %6 1.292,000 6.004,000 1,927.800 8,408,400 s s s Xtreme Total Pathfinder % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Supporting direct labor 96 96 Batch setups % 96 Indirect costs: Product sustaining 996 Other 96 96 % 96 Total cost assigned to products s 0 $ 0 $ Costs not assigned to products: Total cost S 0 Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 120.ee $ 63.30 $ 17.00 1.7 DLHS 22,000 units Pathfinder $ 87.00 $ 52.00 $ 19.00 1.0 DLHS 76,eee units 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: Estimated total manufacturing overhead Estimated total direct labor-hours $ 1,927,800 113,400 DLHS 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 Idle capacity costs): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 703, 080 480, eee 700, eee 44,720 $ 1,927,800 Expected Activity Xtreme Pathfinder Total 37, 4ee 76,000 113,400 22e 180 40e 1 1 2 NA NA NA 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
