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 $ 116.00 $ 64.00 $ 12.00 1.5 DLHO 29,000 units Pathfinder $ 80.00 $ 52.00 $ 8.00 1.0 DLHS 76,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct lobor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $1,912,000 119.500 DLS 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 Activities and activity Measures Expected Activity Overhead coat Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 693, 100 43,500 76,000 Batch setups (setups) 119,500 539,000 290 200 690 Product sustaining (number of products) 640,000 1 2 Other 39,500 NA NA NA Total manufacturing overhead coat 51.912.000 1 savo Supporting direct labor (direct labor-hours) Bateh setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost $ 693,100 539,000 640,000 39,900 $ 1,912,000 43,500 290 1 NA 76,000 200 1 NA 119,500 490 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 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 -Built Problems Saved Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost $ 693,100 539,000 640,000 39,900 $1,912,000 43,500 290 1 NA 76,000 200 1 NA 119,500 490 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. 2 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 $ 0 con setups (setups) Product sustaining (number of products) other Total manufacturing overhead cost $ 693,100 539,000 640,000 39,900 $1,912,000 43,500 290 1 NA 76,000 200 1 NA 119,500 490 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 1 Required 2 Requiryd 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.) Total Xtreme of Amount Total Amount Pathfinder % of Amount Total Amount Traditional Cost System Amount % % % % % % Total cost assigned to products $ 0 $ 0 $ 0 Xtreme Pathfinder Total
