these are two questions*
Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 128.00 $ 90.00 Direct materials per unit $ 63.10 $ 50.00 Direct labor per unit $ 12.00 $ 8.00 Direct labor-hours per unit 1.5 DINS 1.0 DLHS Estimated annual production and sales 20,000 units 70,000 unito 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 $ 2,100,000 Estimated total direct labor-hours 100,000 DE Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the other cost pool includes organization-sustaining costs and idle capacity costs): Activities and activity Measures Supporting direct labor (direct labor-hours) Bateh setupe setups) Product sustaining (number of products Other Total manufacturing overhead coat Estimated Overhead Cost 5 745,000 612.000 700,000 03.000 $ 2.100.000 Expected Activity Xtreme Pathfinder Total 30,000 70,000 100,000 200 160 360 1 1 2 NA BA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity based cost assignments Complete this question by entering your answers in the tabs below. 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 $ 2,100,000 Estimated total direct labor-hours 100,000 DLR Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system 2. The company is considering replacing its traditional costing system with an activity based costing system that would assign its manufacturing overhead to the following four activity cost pools (the other cost pool Includes organization-sustaining costs and idle capacity costs); Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor direct labor-hours) $ 745,000 30,000 70,000 100,000 Batch setups (setups) 612,000 160 360 Product sustaining (number of products) 700,000 1 1 2 Other 43,000 NA NA Total manufacturing overhead cost $ 2,100,000 200 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Pathfinder Total Xtreme Product margin Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-bas your intermediate calculations to 2 decimal places.) Total Xtreme Pathfinder $ Product margin Required 3 > ileau cost $ 494,883 NA Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system 2. Compute the product margins for B300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments (Round your intermediate calculations to 2 decimal places and "Percentage answers to 1 decimal place and and other answers to the nearest whole dollar amount 3300 T500 Total Amount Amount Amen Traditional Cost System Total cost assigned to products Total cost 1.300 1300 Tota Amount Am Total A Advased Costing System Direct costs Indirect costs Total cost assigned to products Costs nol assigned to products Total cost Required 2
