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I don't understand how to do this problem. #7-17 , from managerial accounting 15e. the aring traditional and of the traditional and PROBLEM Traditional Activi

image text in transcribedI don't understand how to do this problem. #7-17 , from managerial accounting 15e.

the aring traditional and of the traditional and PROBLEM Traditional Activi based cost assign and ty-B. smoky makes tw Product Margins LO7-1,LOT-3. cerning these two product lines o types of hiki LOT-A appear below xtreme and the Pathfinder. Data price per unit Xtr eme Pathfinder Din aterials per unit $140.00 or per unit $99.00 Din bor-hours S72.00 $53.00 per unit $24.00 Estimated annual production 2.0 DLHs $12.00 DLHs and sales 20,000 1.0 units ccompany units 80,000 based has a traditional costing system in which manufacturing overhead is applied the on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for upcoming ear appear below: Estimated total manufacturing overhead $1,980,000 Estimated total direct labor hours 120,000 DLHs Required: Using Exhibit 7-13 as a guide, compute the product margins for the xtreme and the Path linder products under the company's traditional costing system 2. The company is considering replacing its traditional co system with costing system that would assign its manufacturing overhead to the following four activ ity cost pools (the other cost pool includes organization costs and idle capacity costs) Expected Activity Estimated Overhead Cost Xtreme Pathfinder Total Activities and Activity Measures 80,000 120,000 Supporting direct labor (direct labor-hours 783,600 40,000 100 495,000 200 602,400 Batch setups (setups) of products Product sustaining (number 99,000 $1,980,000 Total manufacturing overhead cost the Path sing 7-11 as a compute the product margins for the Xtreme and and finder products under the activity-based costing system son of the traditional a quanti and -based cost assign- sing Exhibit 7-14 a de, why the traditional activity-based cost assignments. Explain LOT-3, insulation ments differ. Jobs asbestos company ad costing and Bidding on toxic e potentially

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