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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 Selling price per unit

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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 Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $115.00 $65.10 $ 16.00 1.6 DHS 12,000 units Pathfinder $ 85.00 $53.00 $ 10.00 1.0 DHS 60,000 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 $ 1,779,200 111,200 H 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 teplaong 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 $ 556,000 778,000 400,000 53,200 $ 1,779,200 Expected Activity Xtreme. Pathfinder Total 51,200 60, eee 111,200 340 770 1 1 2 NA NA NA 430 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 amounts) Xtreme Pathfinder Total Product margin 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 Xtre $115.00 $ 65.40 $ 16.00 1.6 DCHS 32,000 units Pathfinder $ 65.00 $ 53.00 $18.00 1.0 DLHS 60,000 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 $ 1.779,200 111,200 DLHS Required: 1 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional casting 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 $ 556,000 770,000 400,000 53,200 $ 1,779,200 Expected Activity Xtreme Pathfinder Total 51,200 60,000 111,200 430 340 770 1 1 2 NA NA 2 NA 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 i Required 2 Required a Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Rou your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin s 0 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 Xtrene $ 115,00 $ 65.40 $ 16.00 1.6 DLHS 32,000 units Pathfinder $85.00 5 53.00 $10.00 1.0 DLHS 60,000 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-hour's $ 1,779,200 111,200 DHS 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 $ 556,000 770,000 400,000 53,200 5 1,779,200 Expected Activity Xtreme Pathfinder Total 51,200 60,000 111,200 430 340 770 1 1 2 NA NA NA 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 Prepare a quantitative comparison of the traditional and activity-based cost assignments (Round your intermediate calculations to places and "Percentage" answers to 1 decimal place.) Path Trital or Total Amount Amount Amount Total Amoun Amount Traditional Cost System X % % % % Total cost assigned to products $ 0 $ 0 Xtreme Pathfinder Total of y of Amount Total Amount Amount Total Amount Amount Activity Based Costing System Direct costs Indirect costs O 5 0 5 0 Total cost assigned to products Xero Pathfinder ti Total Amount Amount Amount Amount Total Around Activity-Based Costing System Dired costs Indirect costs x 0 $ Total cost assigned to products Costs not assigned to products 0 Total cost

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