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 $126.00 S63 20 $ 11.70 1.3 DLHS 21,800 units S $ $ Pathfinder 911.09 51.ee 9.29 1.0 DLHS 75,000 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 2.252.68 102,300 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 idle capacity costs): Estimated Overhead Cost 76250 722, eee 628 Expected Activity XtremePathfinder Total 102.3u8 288 Activities and Activity Measures Supporting direct labor (direct labor.hours) Satch setups (setups) Product sustaining (number of products) otal manufacturing overhead cost 15 2,254,500 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system 5. Prepare a quantitative comparison of the traditional and activita t s a g ents Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Expected Activity Xtreme Pathfinder 75. 182 300 767 250 91 350 $ 2,250, 600 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 2 > Product sustaining number of products) Other Total manufacturing overhead cost 722,000 679,00 91356 $ 2,25e, 6ee NAMA 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.) treme 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 calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) Amount Total Amount Total Amount Traditional Cost System Total cost assigned to products Total Amount Total Amount Amount Activity-Based Costing System Direct Total cost signed to products Costs not gned to products
