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 | $ | 140.00 | $ | 99.00 | ||
| Direct materials per unit | $ | 72.00 | $ | 53.00 | ||
| Direct labor per unit | $ | 24.00 | $ | 12.00 | ||
| Direct labor-hours per unit | 2.0 | DLHs | 1.0 | DLHs | ||
| Estimated annual production and sales | 20,000 | units | 80,000 | units | ||
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| 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 | $1,980,000 | ||
| Estimated total direct labor-hours | 120,000 DLHs | ||
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| |||
| Required: | |
| 1. | Compute the product margins for the Xtreme and the Pathfinder products under the companys traditional costing system. (Round your intermediate calculations to 2 decimal places.) |
product Margin
xteme 220,000
pathfinder ? need answer
total ? need answer
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Fundamentals Of Information Risk Management Auditing An Introduction For Managers And Auditors
Authors: Chris Wright
1st Edition
978-1849288156
