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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 unit

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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 unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $128.00 $ 63.10 $ 12.00 1.5 DLHS 20,000 units Pathfinder $90.00 $ 58.00 $ 8.00 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 $2,100,000 100,000 LHS 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) Activities and Activity Measures Supporting direct labor direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Expected Activity Overhead Cost Xtreme Pathfinder Total $ 745,000 30,000 70,000 100,000 612,000 200 160 360 700,000 1 2 43,000 NA $2,100,000 NA 1 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. the Pathfinder products under the 3. Prepare a quantitative comparison of the traditional and activity-based cost assign 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 compa (Round your intermediate calculations to 2 decimal places and final answers to the nearest Xtreme Product margin Pathfinder Total Regules Required 2 > Prev 4 of 4 B GD 2 $ 3 9% 4 5 6 W 7 E R T Y S D F G H x Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calcular places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder Total % of 5 of Amount Total Amount Amount Total Amount Amount Traditional Cost System % % Total cost assigned to products Xtreme Pathfinder Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % Indirect costs % Total cost assigned to products Costs of signed to products Total cost w

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