Can I please have help on the following problem:
Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathnder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 126.00 $ 91.00 Direct materials per unit $ 63 . 20 $ 5 1 . 00 Direct labor per unit $ 1 1 . 70 $ 9 . 00 Direct labor-hours per unit 1 . 3 DLHs 1 . 0 DLHs Estimated annual production and sales 21, 000 units 75 , 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 $ 2,250,600 Estimated total direct labor-hours 102,300 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 organizationsustaining costs and idle capacity costs): Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 767,250 27,300 75,000 102,300 Batch setups (setups) 722,000 210 170 380 Product sustaining (number of products) 670,000 1 1 2 other 91 , 350 NA NA NA Total manufacturing overhead cost $ 2,250,600 Compute the product margins for the Xtreme and the Pathnder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by enteng 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.) Complete this question by entering your answers in the tabs below. Requiredl Required2 Required3 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.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 5 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.) __I__I_ Total cost assigned to products Xtreme Pathfinder Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % % Indirect costs: % % % % % % Total cost assigned to products Costs not assigned to products: Total cost
