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Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below Xtreme Pathfinder Selling price per
Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below Xtreme Pathfinder Selling price per unit $130.00 91.00 Direct materials per unit 50.00 64.30 8.00 Direct labor per unit 11.20 1.4 DLHs 1.0 DLHs Direct labor-hours per unit Estimated annual production and sales 21,000 units 72,000 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: $2,230,800 Estimated total manufacturing overhead Estimated total direct labor-hours 101,400 DLHs Required 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system xtreme Total Pathfinder S 0 Product margin
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