Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below:

	Xtreme			Pathfinder
Selling price per unit	$	121.00		$	85.00
Direct materials per unit	$	64.90		$	51.00
Direct labor per unit	$	11.20		$	8.00
Direct labor-hours per unit		1.4	DLHs		1.0	DLHs
Estimated annual production and sales		27,000	units		70,000	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	$	2,156,000
Estimated total direct labor-hours		107,800	DLHs

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the companys 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			Expected Activity
Activities and Activity Measures				Xtreme	Pathfinder	Total
Supporting direct labor (direct labor-hours)	$	700,700		37,800	70,000	107,800
Batch setups (setups)		737,000		380	290	670
Product sustaining (number of products)		640,000		1	1	2
Other		78,300		NA	NA	NA
Total manufacturing overhead cost	$	2,156,000

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system

Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder Data conceming these two product Ines appear below selling price per unie Direct saterials per unit oirect labor per wnit Direct labor-hours per unit tatinated annsal prodaction and sales 27,000 units 70,000 wnit 121.00 64.90 11.20 5 85.00 51.00 $ 8.00 -4 DL 1.0 DLES The company has a adtional costing systemin 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 Eatinated total manefacturing overhend Estinaterd 2,156,000 total direct labor-hours 07,800 DL L Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing syssem 2. The company is considering replacing s traditional costing system with an activity -based costing system that would assign its manufacbaing overhead to the Sollowing four ectivity cost pools the Other cost pool includes organization-sustaining costs and ide capacity costsy onal costing he Other cot Expected Activity Sotal tabot Proauet sostaising (ouaber of proburte) Total manufscturing overhead cos Compute the product margins for the Xeme and the Pathinder products under the ectivity based costing system Complete t this question by enterling your anewers in the tabs below NA