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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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