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 Xactive $130.00 64.30 s 11.20 91.00 50.00 14 DLHs 21,000 units S 8.00 1.0 DLHs 72,000 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 year appear below: $2,230,800 Estimated total manufacturing overhead Estimated total direct labor-hours 101,400 DLHs Required: 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 in your response.) the "S" sign XactivePathbreaker 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 Expected Activity Cost Xactive Pathbreaker Total Activities and Activity Measures Supporting direct labor (direct labor-hours) 699,660 Batch setups (setups) Product sustaining (number of products) Other 660,000 780,000 91,140 29,400 72,000 101,400 550 2 NA 320 230 NA NA Total manufacturing overhead cost $ 2,230,800 Cost Total Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other 699,660 29,40072,000 230 101,400 550 660,000 780,000 320 91,140NANA NA Total manufacturing overhead cost 2,230,800 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 intermediate calculations to 2 decimal places and final answers to the nearest sign in your responso.) Total Product margin 3. Prepare a quantitative comparison of the traditional and acdtivity-based cost assignments. (Do not round intermediate calculations. Round your percentage answers to one decimal place and other answers to the nearest dollar amount. Omit the "S" & "%" signs in your response.) %of %of AmountTotal Amount Traditional Cost System (Click to select) (Click to select) (Click to select) Total cost assigned to products Activity-Based Costing System Direct costt (Click to select) (Click to select) answers to the nearest dollar amount. Omit the "&%signs in your response.) %of %of Traditional Cost System Click to select) (Click to select to select Total cost assigned to products Activity-Based Costing System Direct costs: (Click to select) (Click to Indirect costs (Click to select) (Click to select) (Click to select) Costs not (Click to select) Total cost
