Chapter 7 Seved Help Save & Exit Submit Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder Data concening these two product 2 lines appear below: Xtrene Pathfinder Selling price per unit Direct naterials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 140.00 $ 72.00 $99.00 S 53.00 $ 12.00 1.e DUHS se,000 units $ 24.00 2.e DLHS 20,000 units Skipped eBook The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours Data conceming manufacturing overhead and direct labor-hours for the upcoming year appear below Estimated total manufacturing overhead Estimated total direct labor-hours $ 1,980,000 120.000 DUHs 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): Estinated overhead Cost Xtreme Pathfinder Total 783,600- 495,000 602,400 99,000 s 1,980,00- Expected Activity Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other 120,000 40.000- 200 se,000 100 300 NA NA Total manufacturing overhead cost Next >