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please solve ASAP ctice Problem 2: Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below:

please solve ASAP

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ctice Problem 2: Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Xactive Pathbreaker Selling price per unit ..... $127.00 $89.00 Direct materials per unit . $64.80 $5100 Direct labour per unit .. $18.20 $13.00 Direct labour-hours per unit ... ...... 14 DLHS 10 DLHS Estimated annual production and sales... 25,000 units 75,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labour-hours. Data concerning manufacturing overhead and direct labour-hours for the upcoming year appear below: Estimated total manufacturing overhead. . .. $2,200,000 Estimated total direct labour-hours .... 110,000 DLHS Compute the product margins for Xactive and Pathbreaker products under the company's traditional costing system. The company is considering replacing its traditional costing system with an ABC 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 Overhead Expected Activity Cost Pools and Activity Measures Cost Xactive Pathbreaker Total Supporting direct labour (direct labour-hours) . ...... $ 797,500 35,000 75.000 110,000 Batch setups (setups) ... . . . . . . 680,000 250 150 400 Product-sustaining (number of products) ......... . 650,000 2 Other . . . 72,500 NA NA NA Total manufacturing overhead cost . $2,200,000 Compute the product margins for Xactive and Pathbreaker products under the ABC system

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