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Smoky Mountain Corporation makes two types of hiking boots the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per
Smoky Mountain Corporation makes two types of hiking boots the Xtreme and the Pathfinder. 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 Xtreme $ 121.00 $64.90 $11.20 1.4 DLHS 27,000 units Pathfinder $89.ee $ 51.00 5 8.ee 1. DLHS 70,000 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 $ 2,156,000 107,800 DLHS 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 Estimated Expected Activity Activities and activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) 5 700,700 37.000 70,000 Batch setups (setups) 107,800 737,000 290 Product sustaining (number of products) 670 640,000 Other NA Total manufacturing overhead cost 5 2,156,000 380 1 70,300 1 NA 2 NA 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 Required 2 Required a 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 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 | Required Required 2 > 47 Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required a 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.) Pathfinder Total Produd margin Xtreme decimal places and "Percentage" answers to 1 decimal place.) Total Xtreme % of Pathfinder % of Amount Total Amount Amount Amount Total Amount Traditional Cost System else % % % Total cost assigned to products Xtreme Total % of Pathfinder % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % Indirect costs de se % Total cost assigned to products Costs not assigned to products Total cost +
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