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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 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 Selling price per unit $ 126.00 $ Pathfinder 91.00 Direct materials per unit Direct labor per unit $ $ 63.20 $ 51.00 11.70 $ 9.00 Direct labor-hours per unit Estimated annual production and sales 1.3 DLHS 21,000 units 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 $2,250,600 102,300 DLHS Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Do not round your intermediate calculations.) Xtreme Product margin Pathfinder Total $
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