Smoky Mountain Corporation makes two types of hiking boots$-$Xtreme and Pathfinder. Data concerning these two product IInes

appear below:

The company has a traditional costing system that applies manufacturing overhead 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

$$1,756,500$

$117,100DLHs$

Required:

Compute the product margins for Xtreme and Pathfinder under the company's traditional costing system.

The company is considering replacing Its traditional costing system with an actlvity$-$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$)$:

Compute the product margins for Xtreme and Pathfinder under the actlvity$-$based costing system.

Prepare a quantitative comparison of the traditional and activity$-$based cost assignments.

Complete this question by entering your answers in the tabs below.

Compute the product margins for Xtreme and Pathfinder under the company's traditional costing system.

Note: Round your intermediate calculations to $2$ decimal places and final answers to the nearest whole dollar amount.Smoky Mountain Corporation makes two types of hiking boots$$Xtreme and Pathfinder. Data concerning these two product lines appear below:Prepare a quantitative comparison of the traditional and actlvity$-$based cost assignments.

Complete this question by entering your answers in the tabs below.

Prepare a quantitative comparison of the traditional and activity$-$based cost assignments.

Note: Round your intermediate calculations to $2$ decimal places and "Percentage" answers to $1$ decimal place.

$\backslash$table$[[,$Xtreme,Pathfinder,Total Amount$],[,,\%$ of$,,\%$ of$],[,$Amount,$\backslash$table$[[$Total$],[$Amount$]],$Amount,$\backslash$table$[[$Total$],[$Amount$]]],[$Traditional Cost System$],[,,,,,],[,,,,,],[,,,,,],[$Total cost assigned to products$],[,$Xtreme,Pathfinder,Total Amount$],[,,\%$ of$,,\%$ of$],[,$Amount,$\backslash$table$[[$Total$],[$Amount$]],$Amount,$\backslash$table$[[$Total$],[$Amount$]]],[$Activity$-$Based Costing System$],[$Direct costs:$],[$r$,,,,,],[?,,,,,],[$Indirect costs:$],[\frac{?}{\text{b}\text{a}\text{r}}(3),,,,,],[\text{'},,,,,],[,,,,,],[$Total cost assigned to products$],[$Costs not assigned to products:$],[,,,,,],[$Total cost$,,,,,]]$

Xtreme Pathfinder

Selling price per unit $ $115\mathrm{.}00$ $ $84\mathrm{.}00$

Direct materials per unit $ $65\mathrm{.}50$ $ $54\mathrm{.}00$

Direct labor per unit $ $13\mathrm{.}60$ $ $8\mathrm{.}00$

Direct labor$-$hours per unit $1\mathrm{.}7$ DLHs $1\mathrm{.}0$ DLH

Estimated annual production and sales $33,000$ units $61,000$ units

The company has a traditional costing system that applies manufacturing overhead 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 $ $1,756,500$

Estimated total direct labor$-$hours $117,100$ DLHs

Required:

Compute the product margins for Xtreme and Pathfinder under the company$$s traditional costing system.

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$)$:

Activities and $($Activity Measures$)$ Estimated Overhead Cost Expected Activity

Xtreme Pathfinder Total

Supporting direct labor $($direct labor$-$hours$)$ $ $526,95056,10061,000117,100$

Batch setups $($setups$)790,000440350790$

Product sustaining $($number of products$)400,000112$

Other $39,550$ NA NA NA

Total manufacturing overhead cost $ $1,756,500$

Compute the product margins for Xtreme and Pathfinder under the activity$-$based costing system.

Prepare a quantitative comparison of the traditional and activity$-$based cost assignments.