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All one question, thank you! Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning these two product lines appear
All one question, thank you!
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 $ 141.00 $ 64.50 $ 17.00 1.7 DLHS 23,000 units Pathfinder $ 91.00 $ 52.00 $ 10.00 1.0 DLHS 74,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: direct labor-hours. Data Estimated total manufacturing overhead Estimated total direct labor-hours $ 2,714,400 113,100 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): Estimated Overhead Cost $ 791.700 Expected Activity Xtreme Pathfinder Total 39.100 74.000 113.100 Activities and Activity Measures Supporting direct labor (direct labor-hours) 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 $ 791,700 1,062, eee 790,000 70, 700 $ 2,714,400 Expected Activity Xtreme Pathfinder Total 39,109 74,000 113,1ee 340 250 590 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. Required 1 Required 2 Required 3 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.) Xtreme Pathfinder Total Product margin Peamid) JULLIURGI GHID activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 places and "Percentage" answers to 1 decimal place.) Pathfinder Total Xtreme % of Amount Total Amount % of Total Amount Amount Amount Traditional Cost System 9 % % % % % Total cost assigned to products Xtreme Pathfinder Total % of % of Total Amount Amount Total Amount Amount Amount Activity-Based Costing System Direct costs % % 96 Indirect costs Xtreme Pathfinder Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % Indirect costs: % % % % % 95 Total cost assigned to products Costs not assigned to products: Total cost
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