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help me and solve asap Go Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (L07-1, L07-3, L07-4, LO7-5) Smoky Mountain Carporation makes two types
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Go Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (L07-1, L07-3, L07-4, LO7-5) Smoky Mountain Carporation makes two types of hiking boots--the Xtreme and the Pathfinder. Dato concerning these two product lines appear below. 10111ng price per unit Pathfinder $ 130.00 Direct materials per unit 192.00 $63.50 Direct labor per unit 54.00 $13.50 Direct labor-hours per unit $9.00 1.5 L 1.0 DL Estimated and production and wales 24.000 units 71.000 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 Hatimated total manufacturing overhead 02.033,000 Estimated total direct labor-hours 107.000 DE Required: 1. Compute the product margins for the Xtreme and the Pothfinder 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 Expected Activity Activities and Activity Measures Overhead Cout Xtre Pathfinder Total $63.400 Supporting direct labor (direct labor-hours) 36,000 71.000 107.000 Batch wetups (wetups) 572.000 240 200 440 Product sustaining number of products) 750,000 47600 HA Other NA Total manufacturing overhead coat $ 2,033,000 1 2 1 NA Sever Help Save & Che Activities and Activity Measures Supporting direct labor (direct labor-hours) Bateh setups (setups) Product sustaining number of products) Other Total manufacturing overhead cost Overhead cout $ 663, 400 572,000 750.000 47.600 $ 2,033,000 Xtreme 36,000 240 1 Pathfinder 71,000 200 1 NA Hotel 107.000 440 2 NA 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 Whale dollar amount.) Xtreme Total Pathfinder 10 $ 18 Product margin Required 2 > Complete this question by entering your answers in the tabs below. ces Required 1 Requirer 2 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 Help Save Required 1 CI Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and Percentage answers to 1 decimal place.) Xtreme Pathfinder % of Amount Total Amount % of Total Amount Amount Total Amount Traditional Cost System Total cost assigned to products $ 0 5 0 $ Xtreme Pathfinder % of Total Amount Amount Total Amount % of Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs Traditional Cost System Check Total cost assigned to products s 0 0 Xtreme Pathfinder af Amount Total Total Amount Amount Amount Total Amount Activity-Based Costing System Direct costs Indirect costs: 0 0 $ O Total cost assigned to products Cont not assigned to products Total cost $ 0 Step by Step Solution
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