Smoky Mountain Corporation makes two types of hiking bootsthe 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 $ 120.00 $ 65.20 $ 11.20 1.4 DLHS 30,000 units Pathfinder $ 87.00 $ 51.00 $ 8.00 1.0 DLHS 65,000 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 $ 2,033,000 107,000 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): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 631,300 876,000 460,000 65, 700 $ 2 033.000 Expected Activity Xtreme Pathfinder Total 65,000 107,000 320 730 1 1 2 NA NA 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 Overhead Cost $ 631,300 876,000 460,000 65,700 $ 2,033,000 Expected Activity Xtreme Pathfinder Total 42,000 65,000 107,000 410 320 730 1 2 NA NA 2 ice 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 signment 2 -- Chapter 7 Homework i Saved Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's 2. The company is considering replacing its traditional costing system with an activity-based costin manufacturing overhead to the following four activity cost pools (the Other cost pool includes orga 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 Overhead Cost $ 631,300 876,000 460,000 65,700 $ 2,033,000 Expected Activ Xtreme Pathfinder 42,000 65,000 410 320 1 1 NA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based 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 Requited 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costi your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin Required i Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your interme decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder Total % of % 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 % % % % % Tatal mint aminnndinnarit DET search 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 not assigned to products. Total cost