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Rocky Mountain Corporation makes two types of hiking bootsXactive and the Pathbreaker. Data concerning these two product lines appear below: Xactive Pathbreaker Selling price per
Rocky Mountain Corporation makes two types of hiking bootsXactive and the 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 $ 51.00 Direct labor per unit $ 18.20 $ 13.00 Direct labor-hours per unit 1.4 DLHs 1.0 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 labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $2,200,000 Estimated total direct labor-hours 110,000 DLHs -------------------------------------------------------------------------------- Required: 1. Compute the product margins for the Xactive and the Pathbreaker products under the companys traditional costing system. (Loss amounts should be indicated with a minus sign. Omit the "$" sign in your response.) Xactive Pathbreaker Total Product margin $ $ $
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