Compute the product margins

Saved Help Save & Exit Estimated total manufacturing overhead Estimated total direct labor-hours $ 2, 063, 400 108, 600 DLHS Required: 1. Compute the product margins for Xtreme and Pathfinder 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 Expected Activity Activities and (Activity Measures) Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 673, 320 33, 600 75,000 108, 600 Batch setups (setups) 520, 000 280 240 520 Product sustaining (number of products) 790, 000 1 1 2 Other 80, 080 NA NA NA Total manufacturing overhead cost $ 2, 063, 400 Compute the product margins for Xtreme and Pathfinder 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