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Question 4 (of 5) 4. Rocky Mountain Corporation makes two types of hiking boots-Xactive and the Pathbreaker. Data concerning these two product lines appear below

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Question 4 (of 5) 4. Rocky Mountain Corporation makes two types of hiking boots-Xactive and the Pathbreaker. Data concerning these two product lines appear below Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $120.00 64.10 $ 13.50 90.00 53.00 $ 9.00 .5 DLHs 30,000 units 1.0 DLHs 70,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data conceming manufacturing overhead and direct labor-hours for the upcoming year appear below $2,300,000 Estimated total manufacturing overhead Estimated total direct labor-hours 115,000 DLHs 1. Compute the product margins for the Xactive and the Pathbreaker products under the company's traditional costing system. (Loss amounts should be indicated with a minus sign. Omit the s" sign in your response.) Total Product margin$ 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 Activities and Activity Measures CostXactive Pathbreaker Total Supporting direct labor (direct labor-hours) Batch setups (setups) 977,500 45,000 70,000 115,000 510 612,000 700,000 10,500 300 Product sustaining (number of products) Other NA NA NA Total manufacturing overhead cost $2,300,000 Compute the product margins for the Xactive and the Pathbreaker products under the activity-based costing system. (Loss amounts should be indicated with a minus sign. Round your intermedlate calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Product margin Compute the product margins for the Xactive and the Pathbreaker prodacts under the activity-based costing system (Loss amounts should be indicated with a minus sign. Round your ntermediate calculations to 2 decimal places and final answers to the nearest dollar amount Omit the " sign in your response) Product margin . Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not other answers to the nearest dollar amount. Ont the-s-&. signs in your response.) Round your percentage answers to one decimal place and Xactive %of Total Amount Total cost assigned to products Activity-Based Costing System Direct costs Total cost assigned to products Total cost H T 2

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