Answered step by step
Verified Expert Solution
Question
1 Approved Answer
this is all the same question. 1. Smaky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines
this is all the same question.
1. Smaky 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 $115.00 S 35.00 Direct materials per un $ 65.40 S $ 53.00 Dract labor par unt 1 16.00 S 10.00 Direct labor-hours par unt 16 DLHS 1.0 CLHS Estimated annual production and sales 32.000 units 50.000 untis The company has a traditional coating system in which manufacturing overhead is apalied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below Estimated to al manufacturing avaitead Esilmated total direct labor-hours 51.779,200 111.200 DLHS Required: 1. Compute the product margins for the Xtreme and the Pathinder products under the company's traditional costing system. Do not round your intermediate calculations. Xtreme Pathfinder Total Precucl margin 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing owerhead to the following four activity cost pools (the Other cost pool includes organizatior-sustaining costs and idle capacity Costs) Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch selups iselups) Product sustaining number of products Olher Total manufacturing overhead cost Estimated Overhead Cost $ 556.000 770 000 400 000 53.200 S 1,779 200 Xtreme 51.200 430 1 NA Activity Pathfinder GO COO 340 1 NA Tota 111,200 770 2 NA Compute the product margins for the Xtrama and the Pathfinder products under the activity-based costing system. (Negative product margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place. (i.e. 1234 should be entered as 12.3)) Total Xtreme % of Amount Total Amount Pathinder % or Amount Total Amount Amount Traditional Cost System . % % Total cost assigned to products Pathfinder Total Xtreme % of Amount Total Amount Amount Tatal Amount Amount Activity-Based Costing System Direct costs: 14 % Indirect costs Total cos assigned to products Cests not assigned to products Total castStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started