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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: Xtreme Pathfinder Selling price

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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: Xtreme Pathfinder Selling price par unit $ 124.00 $ 88.00 Direct materials per unit $ 63.40 $ 53.00 Direct labor per unit $ 14.40 $ 8.00 Direct labor-hours per unit 1.8 DLS 1.0 DLHS Estimated annual production and sales 23.000 units 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 $ 2,005,200 Istinated total direct labor-hours 111,400 DIN 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 Estimated xpected Activity Overhead Coat Xtreme Pathfinder Total Supporting direct labor direct labor-hours) $ 712,960 41,400 Dateh setupe (netups) 70,000 111,400 504,000 Product sustaining (number of producto) 230 190 420 740.000 1 1 2 Other 48,240 NA NA NA Total manufacturing overhead cost $ 2,005, 200 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. Estimated Expected Activity Activities and Activity Monsures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 712,960 41,400 Batch setups (setups) 70,000 111,400 504,000 230 190 420 Product sustaining (number of products) 740,000 1 1 2 Other 48,240 NA NA NA Total manufacturing overhead cost $ 2,005,200 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 2 > gul Other Estimated Activities and Activity Measures Expected Activity Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 712,960 41,400 70,000 Batch setups (wetups) 111,400 504,000 230 190 420 Product sustaining (number of products) 740,000 1 1 2 48,240 NA NA NA Total manufacturing overhead cont $ 2,005,200 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. ces Required 1 Required 2 Required 3 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 Product margin Xtreme . . Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculator decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder % of % of Total Amount Total Total Amount Amount Amount Traditional Cost System Amount Total cost assigned to products Xtreme Pathfinder Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Prey 1 of 4 !!! Next > ALI Total Amount % of Total Amount % of Total Amount Amount Amount Traditional Cost System Total cost assigned to products Xtreme % of Pathfinder % of Total Amount Amount Total Amount Amount Total Amount Activity-Based Costing System Direct costs: Indirect costs Total cost assigned to products Costs not assigned to products: Total cost Required 2

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