Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder Data concerning these two product lines appear below Xtreme Pathfinder Selling price per unit $ 138 00 $ 90 00 Direct materials per unit $ 64 40 $ 51 00 Direct labor per unit $ 13 50 $ 9 00 Direct labor hours per unit 1 5 DLHs 1 0 DLHs Estimated annual production and sales 22,000 units 73,000 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 $ 2,438,000 Estimated total direct labor hours 106,000 DLHs Required 1 Compute the product margins for the Xtreme and the Pathfinder products under the companys 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 Overhead Cost Expected Activity Xtreme Pathfinder Total Supporting direct labor (direct labor hours) $ 646,600 33,000 73,000 106,000 Batch setups (setups) 969,000 330 240 570 Product sustaining (number of products) 780,000 1 1 2 Other 42,400 NA NA NA Total manufacturing overhead cost $ 2,438,000 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 assignment Complete this question by entering your answers in the tabs below 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 ) 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 ) Prepare a quantitative comparison of the traditional and activity based cost assignments (Round your intermediate calch decimal places and Percentage answers to 1 decimal place )

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Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price

Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below:

	Xtreme		Pathfinder
Selling price per unit	$ 138.00		$ 90.00
Direct materials per unit	$ 64.40		$ 51.00
Direct labor per unit	$ 13.50		$ 9.00
Direct labor-hours per unit	1.5	DLHs	1.0	DLHs
Estimated annual production and sales	22,000	units	73,000	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	$ 2,438,000
Estimated total direct labor-hours	106,000	DLHs

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the companys 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 Overhead Cost	Expected Activity
Activities and (Activity Measures)	Estimated Overhead Cost	Xtreme	Pathfinder	Total
Supporting direct labor (direct labor-hours)	$ 646,600	33,000	73,000	106,000
Batch setups (setups)	969,000	330	240	570
Product sustaining (number of products)	780,000	1	1	2
Other	42,400	NA	NA	NA
Total manufacturing overhead cost	$ 2,438,000

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 assignment

Complete this question by entering your answers in the tabs below. 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.) 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.) Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calch decimal places and "Percentage" answers to 1 decimal place.)