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 sterials per unit Direct labor per unat Direct labor-hours per unit Estimated annual production and sales 52.ee 55320 5 12.70 13 HS 21,000 units Pathfinder 593.00 55.0 S. 750 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. Esticated total manufacturing overhead Estimated total direct labor-hours 2,250, be 282,388 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 poot includes organization-sustaining costs and ide capacity costs) Estates Expected Activity Activities and Activity Measures Overhead Cast xtrem Pathfinder Total Supporting direct labor (direct laber-hours) 3 3. 762,25e 27.300 302.300 Batch setups (sets) 722; Product sustaining number of products) 670, 91,258 Total manufacturing overhead cost $ 2,25e, 6 Other 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 a 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 > 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 $ 125.00 $ 53.2 $11.7e 1.3 DLHS 21,000 units Pathfinder $91.88 $51.ee $ 9.80 1.8 DLHS 25,000 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 to a sanufacturing overhead Estimated total direct labor-hours $2,250,600 102,300 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 idie capacity costs) Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total sanufacturing overhead cost Estimated Overhead cost $ 767, 252 722, Bee 670, eee -91, 35e $ 2,250, 688 Expected Activity Xtreme Pathfinder Total 27, see 75.ee 102,300 210 178 1 1 NA NA NA 38e 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 activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin 0 Total manufacturing overhead cost 32.250,00 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 Requited 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decima places and "Percentage answers to 1 decimal place.) Xtreme Pathfinder Tool Amount Total Amount Amount Total About At Traditional Cost System Total cost assigned to products 5 5 0 Xtreme Paide So noun Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs Indirect costs $ 5 Total cost assigned to products Costs not assigned to products Total cost 5
