Answered step by step
Verified Expert Solution
Question
1 Approved Answer
any help would be great Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear
any help would be great
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 $ 123.00 $ 63.80 $18.80 1.2 DLHS 27,000 units Pathfinder $ 86.ee $ Se.ee $ 9.00 1. DLHS 74,000 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 $ 2,340,800 106,400 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 $ 691,600 900,000 700,000 49,200 $ 2,340,000 Expected Activity Xtrem Pathfinder Total 32,400 74,000 106,400 270 230 500 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 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 Required 1 Required 2 > 7 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 3 > 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.) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Traditional Cost System Amount % % % 9 96 % Total cost assigned to products $ 0 $ 0 $ Xtreme Total % of Total Amount Pathfinder % of Amount Total Amount Amount Amount Activity-Based Costing System Direct costs: % % % % Indirect costs % % % RR % % $ 0 $ Total cost assigned to products Costs not assigned to products: 0 $ 0 Total cost S 0 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started