Hello,

I'm seeking help with this homework assignment. Any guidance is truly appreciated. I have attached the document.

Thank you in advance,

Don Vic

Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 141.00 $ 64.50 $ 17.00 1.7 DLHs 23,000 units Pathfinder $ 91.00 $ 52.00 $ 10.00 1.0 DLHs 74,000 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 laborhours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $2,714,400 113,100 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Do not round your intermediate calculations.) Xtreme Pathfinder Total Product Margin 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): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 791,700 1,062,000 790,000 70,700 $2,714,400 Xtreme 39,100 340 1 NA Activity Pathfinde r 74,000 250 1 NA Compute the product margins for the Xtreme and the Pathfinder products under the activitybased costing system. (Negative product margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Product Margin Pathfinder Total Total 113,100 590 2 NA 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3)) Xtreme Amoun t Pathfinde r % Of Total Amount Amount Total % Of Total Amount Amount Traditional Cost System % % % % Total Cost assigned to products Xtreme Amoun t Pathfinde r % Of Total Amount Amount Total % Of Total Amount Amount Activity-Based Costing System Direct Costs % % % % % % % % % % Indirect Costs Total Cost Assigned to products Costs not assigned to products Total Cost Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 141.00 $ 64.50 $ 17.00 1.7 DLHs 23,000 units Pathfinder $ 91.00 $ 52.00 $ 10.00 1.0 DLHs 74,000 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 laborhours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $2,714,400 113,100 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Do not round your intermediate calculations.) Xtreme Pathfinder Total Product Margin 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): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 791,700 1,062,000 790,000 70,700 $2,714,400 Xtreme 39,100 340 1 NA Activity Pathfinde r 74,000 250 1 NA Compute the product margins for the Xtreme and the Pathfinder products under the activitybased costing system. (Negative product margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Product Margin Pathfinder Total Total 113,100 590 2 NA 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3)) Xtreme Amount Pathfinde r % Of Total Amount Traditional Cost System Direct materials Direct labor Manufacturing overhead Total Cost assigned to products Activity-Based Costing System Direct Costs Direct materials Direct labor Indirect Costs Supporting direct labor Batch setups Product sustaining Total Cost Assigned to products Costs not assigned to products Other % Of Total Amount Amount % % Xtreme Amoun t Amount Total % % Pathfinde r % Of Total Amount Amount Total % Of Total Amount Amount % % % % % % % 50% % 50% 72,5000 Total Cost Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 141.00 $ 64.50 $ 17.00 1.7 DLHs 23,000 units Pathfinder $ 91.00 $ 52.00 $ 10.00 1.0 DLHs 74,000 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 laborhours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $2,714,400 113,100 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Do not round your intermediate calculations.) Xtreme Pathfinder Total Product Margin 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): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 791,700 1,062,000 790,000 70,700 $2,714,400 Xtreme 39,100 340 1 NA Activity Pathfinde r 74,000 250 1 NA Compute the product margins for the Xtreme and the Pathfinder products under the activitybased costing system. (Negative product margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Product Margin Pathfinder Total Total 113,100 590 2 NA 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3)) Xtreme Amoun t Pathfinde r % Of Total Amount Amount Total % Of Total Amount Amount Traditional Cost System % % % % Total Cost assigned to products Xtreme Amoun t Pathfinde r % Of Total Amount Amount Total % Of Total Amount Amount Activity-Based Costing System Direct Costs % % % % % % % % % % Indirect Costs Total Cost Assigned to products Costs not assigned to products Total Cost