Check my work Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, L07-4. LO7-5) Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning these two product Ines appear below. Xtreme Pathfinder Selling price per unit $124.00 $ 88.00 Direct materials per unit $ 63.40 $ 53.00 Direct Labor per unit $ 14.40 $ 8.00 Direct labor-hours per unit 1.8 DUH 1.0 DLHS Estimated annual production and sales 23,600 units 70,000 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 sanufacturing overhead Estimated total direct laber-hours 52,005, 200 111,400 DLHS cos 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 die capacity costs): Total Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups setups) Product sustaining number of products) Other Total manufacturing overhead cost Estimated Expected Activity Overhead Cost Xtreme Pathfinder $ 712,960 41,400 70.000 111, 4ae 504,000 230 198 420 748,00 2 2 48,240 NA NA NA 52,205,200 Saved Help Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below Xtreme Pathfinder Selling price per unit $ 124.00 $ 88.00 Direct materials per unit $ 63.40 $ 53.00 Direct labor per unit $ 14.40 8.00 Direct labor-hours per unit 1.8 DLHS 1. DLHS Estimated annual production and sales 23,800 units 70,000 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 $ 2,005, 200 111,400 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): Estimated Activities and Activity Measures Expected Activity Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 712,960 41,400 70,000 111,400 Batch setups (setups) 584,000 190 420 Product sustaining (number of products) 740,000 1 Other 48,240 NA NA NA Total manufacturing overhead cost $ 2,005,200 230 HI URUTULLUNY CHICOU UIC VIIvy vui luy La PUIS HIC UNICI L pour Uca ury Ursuwny ULUSU 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 Expected Activity Overhead Cost Xtreme Pathfinder Total $ 712,960 41,400 70,000 111,400 504,000 230 199 429 740,000 1 1 2 48,240 NA NA NA $ 2,005, 200 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 $ Required 2 > *TULIVIULUHy UVCHICOU IU MIUNIY ruuuuuwiy LOL PUIS CUCI Lapu Luca vi yurverSumry Low 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 Expected Activity Overhead Cost Xtreme Pathfinder Total $ 712,960 41,400 70,000 111,490 504,000 230 199 420 740,000 1 1 2 48,240 NA NA NA $ 2,005,200 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 Require2 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 $