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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 per unit $ 130.00 $ 91.00 Direct materials per unit $ 64.30 $50.00 Direct labor per unit $ 11.20 $ 8.00 Direct labor-hours per unit 1.4 DLHS 1.0 DLR Estimated annual production and sales 21,000 units 72,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data a concerning manufacturing overhead and direct labor hours for the upcoming year appear below: Estimated total manufacturing over head $ 2, 230,00 Estimated total direct labor-hours 101,400 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): NA Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 699,660 29,400 72,000 101,400 Batch setups (setups) 660,000 320 230 550 Product sustaining (number of products) 780,000 1 1 2 Other 91,140 NA NA Total manufacturing overhead cost $ 2,230,800 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 1 Required 2 > 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 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calcu decimal places and "Percentage" answers to 1 decimal place.) Xtreme % of Total Amount Pathfinder % of Total Amount Amount Total Amount Amount Traditional Cost System Total cost assigned to products Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs Total cost assigned to products Costs not assigned to products: Total cost

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