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3.00 points Problem 7-17 comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, Smoky Mountain Corporation makes two types of hiking boots -Xtreme and the Pathfinder.
3.00 points Problem 7-17 comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, Smoky Mountain Corporation makes two types of hiking boots -Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit $120.00 8700 6360 Direct materials per unit 55.00 Direct labor per unit 12.00 10.00 Direct labor hours per unit 1.2 DLHs 1.0 DLHs 25.000 units 72.000 units Estimated annual production and sales 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 $2,040,000 Estimated total direct labor-hours 102.000 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Do not round your intermediate calculations.) xtreme Pathfinder Total Product margin 510,000 14.000 s 654000
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