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HW 7 i Saved 2 7 points eBook Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two
HW 7 i Saved 2 7 points eBook 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 $ 63.40 Xtreme Pathfinder $ 124.00 $ 88.00 $ 53.00 $ 14.40 $ 8.00 1.8 DLHS 23,000 units Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 1.0 DLHS 70,000 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: Hint Print References Estimated total manufacturing overhead Estimated total direct labor-hours Required: $ 2,005,200 111,400 DLHS 1. 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): Estimated Overhead Cost Expected Activity Xtreme 41,400 Pathfinder Total 70,000 111,400 230 190 1 1 420 2 48,240 NA $ 2,005,200 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) $ 712,960 504,000 740,000 Other Total manufacturing overhead cost 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. 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.) Product margin Xtreme Pathfinder Total 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. (Round your intermediate calculations to 2 decimal places.) Product margin Xtreme Pathfinder Total HW 7 i 2 Complete this question by entering your answers in the tabs below. 7 points eBook Required 1 Required 2 Required 3 Saved 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 Total Amount Amount % of Total Amount Total Amount Amount Traditional Cost System Hint Print References Total cost assigned to products Xtreme Pathfinder Amount % of Total Amount Amount % of Total Amount Total Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost
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