I need help with this question. "compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system"
Check my work 4 Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder Data concerning these two product lines appear below 35 trene Selling price per unit Direct materials prit Direct labor per unit Direct Labor-hours per wit Tatimated annust production and sales $ 4.20 16.00 1.6 25.000 Pater $91.00 155.00 $10.00 1.0 DE 71,000 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: Istinate total storing overhead Tited total direct labor-hours $ 2,721,000 115.000 e Required: 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 ketiwit. A twity Measure upporting direct lahor (direct labor-hours) Batch set teet Product Inn ber of products Othe Total manufacturing overhead cost Tainted Expected esivity Owchond contrathindet total 5088,000 40,000 -71.000 111,000 583,000 310 220 780,000 1 2 0.000 52.331,000 530 1 NA HA ME Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups ) Product sustaining (number of products) Estimated Overhead Cost $ 888,000 583,000 780,000 80,000 $ 2,331,000 Expected Activity Xtreme Pathfinder Total 40,000 71,000 111,000 310 220 530 1 1 2 NA NA NA 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. Required 1 Required 2 Required 3 Required 2 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 Check my work 4 Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder Data concerning these two product lines appear below: 35 pos felling price per unit Diret materials per unit Diret labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme 5125.00 64.20 16.00 1.6 DL 25,000 units Pathtidek 591.00 $ 55.00 $ 10.00 1.0 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: tatimated total manufacturing overhead Estimated total direct labore $2,331,000 111.000 t lem Required: 1 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing 2. The company is considering replacing its traditional costing systom 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 ide capacity costs tities and Activity Men Supporting direct labor direct labor-houra Batehetupe setups) Froduct maining number of produeta) Total manufacturing overhead cost Estimated Expected Activity Overhead coat xtr Pathinder Total 3 88,000 40,000 71,000 111,000 583,000 310 220 530 780,000 1 1 2 BO,000 MA NA NA $ 2,331,000 Other
