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Please solve the second image based on information from first image. Camplete this question by entering your answers in the tabs below. Required 1 Required
Please solve the second image based on information from first image.
Camplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) |-- Total cost assigned to products Activity-Based Costing System Direct costs: Total cost assigned to products Costs not assigned to produds: : :1 Total cost Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below; xtreme Pathfinder Selling price per unit 5 126.00 5 91.00 Direct materials per unit 5 63.20 $ 51.00 Direct labor per unit 5 11.70 $ 9.00 Direct laborhours per unit 1.3 DLHs 1.0 DLHs Estimated annual production and sales 21,000 units 75,000 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 $ 2,250,600 Estimated total direct laborhours 102,300 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): Estimated Expected Activity Activities and (Activity Measures 1 Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct laborhours] $ 767,250 27,300 75,000 102,300 Batch setups [setups) 722,000 210 170 380 Product sustaining (number of products) 6 70 , 00 0 1 1 2 Other 9 l , 35 0 NA NA NA Total manufacturing overhead cost $ 2 r 250 I 50 0 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison ofthe traditional and activity-based cost assignments. 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 Pathnder 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.) Product marginStep by Step Solution
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