quiz chap 7 question 4

part 1

part 2

part 3

Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below. 12:59 Xtreme Pathfinder Selling price per unit $ 123.00 $ 86.00 Direct materials per unit $.63.80 $ 50.00 Direct labor per unit 5 10.80 5 9.00 Direct labor-hours per unit 1.2 DLHS 1.0 DLHS Estimated annual production and sales 27,000 units 74,000 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 $ 2,340,000 Estimated total direct labor-hours 106,400 OHS 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 Hint Activities and Activity Measures Estimated Expected activity Overhead Cost Supporting direct labor (direct labor-hours) Xtreme Pathfinder Total Batch setups (setups $ 691,600 32,400 74,000 106,400 Product sustainine (number of products) 900.000 270 2.30 500 Othe 700.000 1 1 2 42.200 NA Total manufacturing overhead cost NA 5 2.40 Compute the product margins for the Xtreme and the Pathfinder products under the activity based costing 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 Required 1 Required 2 Required Compute the product margins for the tree and the pathinder products under the company's traditional costing system (Bound your intermediate calculations to deal places and name to the nearest whole dotar amount) X Pathfinder Total ME GE 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 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.) Xtreme Pathfinder Total Product margin Reguld Required 2 > 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 Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places:) Xtreme Pathfinder Total Product margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1108 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and Percentage answers to I decimal place) Book Xtreme of Pathfinder % of Total Amount Amount Total Amount Amount Total Amount Hint Traditional Cost System Total cost assigned to products Pathfinder + Xtreme % of Total Amount Amount Total Amount % of Total Amount Amount Activity Based Costing Systems Direct costs Indirect costs: Total cost signed to products Costs not assigned to products Total com 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 Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places:) Xtreme Pathfinder Total Product margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1108 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and Percentage answers to I decimal place) Book Xtreme of Pathfinder % of Total Amount Amount Total Amount Amount Total Amount Hint Traditional Cost System Total cost assigned to products Pathfinder + Xtreme % of Total Amount Amount Total Amount % of Total Amount Amount Activity Based Costing Systems Direct costs Indirect costs: Total cost signed to products Costs not assigned to products Total com