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For this section, I need help getting the product margin for Xtreme (Pathfinder was correct). I had tried 220,000 for Xtreme, but it was incorrect)
For this section, I need help getting the product margin for Xtreme (Pathfinder was correct). I had tried 220,000 for Xtreme, but it was incorrect)
I need help with finding the product margin for Pathfinder (it was not 1,731,400). But the value for Xtreme was correct.
PLEASE SHOW ALL WORK!
Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Pathfinder $ 99.00 $ 53.00 $ 12.00 Xtreme 140.00 $ 72.00 $24.08 Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 2.0 DLHs 20,000 units 1.0 DLHs 80,000 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 % 1,980,000 120,000 DLHs Required: 1Compute 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) 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 $ 1,400,0001,400,000 Product margin Required 2> Required 1 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 activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Total Xtreme Pathfinder Product margin $ (12,400) $ (12,400) Required 1 Required 3>Step by Step Solution
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