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please help me solve this problem Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines
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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. The company has a traditional costing system in which manufacturing overhead is applied to units based on direct fabor-hours. Data conceming manufacturing overhead and direct labor-hours for the upcoming year appear below. 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 indudes organization-sustaining costs and idle capacity costs): Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costung 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. 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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