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part 3 please Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme

part 3 please
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Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 120.00 $ 87.00 Direct materials per unit $ 63.30 $ 52.00 Direct labor per unit $ 17.00 $ 10.00 Direct labor-hours per unit 1.7 DLHS 1.0 DLHS Estimated annual production and sales 22,000 units 76,000 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 $ 1,927,800 Estimated total direct labor-hours 113,400 DLHS 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): 5 Estimated Activities and activity Measures Expected Activity Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 703,080 37,400 76,000 113,400 Batch setups (setups) 480,000 220 180 400 Product nuntaining (number of products) 700,000 1 1 2 Other 44,720 NA NA NA Total manufacturing overhead cost $ 1,927,800 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. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder % of Amount Total Amount % of Total Amount Total Amount Amount $ $ Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products 1,392,600 374,000 635,800 2,402,400 3,952,000 760,000 1,292,000 6,004,000 $ $ $ 0 Xtreme Pathfinder Total Amount % of Total Amount Amount % of Total Amount Amount es $ 1.392,600 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 $ 1,392,600 0 $ 0 Total cost $ Drew 4 A MA

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