Question
Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per
| Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: |
| Xtreme | Pathfinder | |||||
| Selling price per unit | $ | 116.00 | $ | 80.00 | ||
| Direct materials per unit | $ | 64.00 | $ | 52.00 | ||
| Direct labor per unit | $ | 12.00 | $ | 8.00 | ||
| Direct labor-hours per unit | 1.5 | DLHs | 1.0 | DLHs | ||
| Estimated annual production and sales | 29,000 | units | 76,000 | 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 | $1,912,000 | ||
| Estimated total direct labor-hours | 119,500 DLHs | ||
  | |||
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
