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: XactivePathbrea Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $141.00 64.50 s17.00 $ 91.00 s 52.00 s 10.00 1.0 DLHs 74,000 units 1.7 DLHs 23,000 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 Estimated total direct labor-hours S2,714,400 113,100 DLHs Required 1. Compute the product margins for the Xactive and the Pathbreaker products under the companys traditional costing In your response.) system. (Loss amounts should be indicated with a minus sign, Oinlt the "$" sign 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 tour activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs) ies and Activity Measures Supporting direct labor (direct labor-hours) S791.700 39.10074.000/113,100 Batch setups (setups) Product sustaining (number of products) Other 1,062.000340 250 790,000 2 70,700NANANA Total manufacturing overhead cost $ 2,714.400 Compute the product margins for the Xactive and the Pathbreaker products under the activity-based g system. (Loss amounts should be indicated with a minus sign. Round your i calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Pathbreaker Total Xactive Product margin msi %of Traditional Cost System (Click to select) (Click to select) 1% (Click to select) Total cost assigned to products Activity-Based Costing System Direct costs (Click to select) (Click to select) Indirect costs: (Click to select) (Click to select) (Click to select) Total cost assigned to products Costs not assigned to products: Click to select) Total cost 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.( intermediate calculations. Round your percentage answers to one decimal place and answers to the nearest dollar amount. Omit the "S" & "%" signs in your response.) Xactive %of Total Amount Amoun Traditional Cost System (Click to select) (Click to select) (Click to select) Total cost assigned to products Activity-Based Costing System Direct costs: (Click to select) (Click to select)
