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help with the ones with the x's Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning these two product
help with the ones with the x's
Smoky Mountain Corporation makes two types of hiking boots--the Xtreme 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 $ 115.00 $65.10 $ 12.ee 1.2 DLMS 29,600 units Pathfinder $ 33.00 $ 50.00 $10.00 1. e DLHS 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. Estimated total manufacturing overhead Estimated total direct labor-hours $ 1,800,000 100,000 US Required: 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) 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 $ 520,000 781,000 440,000 59,000 $ 1.500,00 Expected Activity Xtreme Pathfinder Total 29, ee 21,000 100,000 400 310 710 1 2 NA NA 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 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 $ 810,800 930,200 $ 1,741,000 Required 2 Required 1 Required 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 $ 346,260 $ 702,900 $ 1,049,160 margin Total Xtreme % of Total Amount Pathfinder % of Total Amount Amount Amount Amount Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products 69.9% 10.76 % $ 1,887,900 290,000 522,000 $ 2,699,900 $ 3,550,000 710,000 1,278,000 $ 5,538,000 64.1 % 12.8 % % 23.1 % $ 5,437,900 1,000,000 1,800,000 $ 8,237,900 19.3 % Retu Xtreme Pathfinder Total Amount % of Total Amount % of Total Amount Amount Amount $ 1,887.900 290,000 63.2 % % 9.7 % % S 3,550,000 710,000 68.4 % 13.7 % % $ 5,437,900 1,000,000 5.1 % 369,200 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 Total cost 14.7 X % 150,800 440,000 220,000 $ 2,988,700 7.1 % % 6.6% 4.2 % 341,000 220,000 $ 5,190,200 520,000 781,000 440,000 $ 8,178,900 7.4 % 59,000 S 8,237,900 Step by Step Solution
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