C Not secure Assignment- Activity Based Costing KQuestion 4 (of 5) 4. Rocky Mountain Corporation makes two types of hiking boots-Xactive and the Pathbreaker. 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 Xactive $141.00 s 64.50 $ 17.00 Pathbreaker $ 91.00 s 52.00 S 10.00 1.7 DLHs 23,000 units 1.0 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: S2.714,400 Estimated total manufacturing overhead Estimated total direct labor-hours 113,100 DLHs C Not secure | erto.m Required 1. Compute the product margins for the Xactive and the Pathbreaker products under the company's traditional costing system. (Loss amounts should be indicated with a minus sign. Omit the "$" sign in your response.) Product margin 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs) Estimated Overhead Expected Activity Activities and Activity Measures Cost Xactive Pathbreaker Total direct labor (direct labor-hours) 1,062,000 790,000 70,700 791,700 39,100 74,000 113,100 590 2 NA 340 Batch setups (setups) Product sustaining (number of products) Other 250 NA Total manufacturing overhead cost s 2,714,400 Compute the product margins for the Xactive and the Pathbreaker products under the activity-based costing system. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 declmal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Not system that would assign its manufacturing overhead to the following four activity cost pools (the Of cost pool includes organization-sustaining costs and idle capacity costs) Expected Activity Overhead 791.700 790,000 Xactive Pathbreaker Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other 39,100 340 74,000 250 113,100 590 $ 70,700 NA NA Total manufacturing overhead cost $ 2.714,400 Compute the product margins for the Xactive and the Pathbreaker products under the activity-b costing system. (Loss amounts should be indicated with a minus sign. Round your interm calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the sign in your response.) Xactive Pathbreaker Total Product margin Prepare a quantitative comparison of the traditional and activity-based cost assignments, (Do answers to the nearest dollar amount. Omit the-S" & "%" signs in your response.) 6 of %of Traditional Cost System (Click to select) (Click to select) (Click to select) Total cost assigned to products Activity-Based Costing System Direct costs: (Click to select) (Click to select) Indirect costs (Click to select) Click to select) (Click to select) Total cost assigned to products Costs not assigned to products Click to select Total cost tpx sign in your response: PathbreakerTotal Product margin 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your percentage answers to one decimal place and other answers to the nearest dollar amount. Omit the "S" & "%" signs in your response.) Xactive Pa %of Total Amount Amount Amount Traditional Cost System (Click to select) (Click to select) (Click to select)