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need help with all three requirements 2 Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, LO7-5) Smoky Mountain Corporation makes two
need help with all three requirements
2 Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, LO7-5) Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: pped Book Hint Print ferences Xtreme Pathfinder Selling price per unit $ 120.00 $ 87.00 Direct materials per unit $63.60 $ 55.00 Direct labor per unit $ 12.00 $10.00 Direct labor-hours per unit 1.2 DLHS 1.0 DLHS Estimated annual production and sales 25,000 units 72,000 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 manu Lacturing overhead $ 2,040,000 Estimated total direct labor-hours 102,000 DLRS 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): Estimated Expected nativity Activities and Activity Measures Overhead Coat Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 622,200 30,000 72,000 102,000 Batch setups (setupa) 644,000 250 210 460 Product sustaining (number of products) 700,000 1 1 2 Other 73.800 NA NA Total manufacturing overhead cost $ 2,040,000 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. NA 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.) Step by Step Solution
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