Urgent help needed
Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product Belling price per unit Direct saterials per unit Direct labor per unit Direet labor-hours per unit Betinated annual production and wale Xtre $124.00 $ 16.40 16.40 1. 23,000 Patsider 88.00 53.00 $ 8.00 1.9 DRO 70.000 Lt 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 tatal manufacturing overhead Estimated total direct labor-hour 32,005,200 111,400 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 laber-hours) Batch setup (setup Product sustaining number of products Other Estimated Overhead con 5 712.960 504,000 749.000 46.240 Expected Activity XL Pathfinder Total 41,400 70.000 111,400 230 100 420 1 1 2 NA SA 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): Katimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 712,960 41,400 70,000 111,400 Batch setups teetups) 504,000 230 190 Product sustaining number of products) 740,000 1 1 2 Other 48,240 Total manufacturing overhead cost $2,005,200 420 NA NA 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. 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.) Xtreme Pathfinder Total Product margin $ 0 Prev 1 of 4 HE Next > Activities and Activity Measure Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining number of products) Other Total manufacturing overhead cost Tatimated Overhead Coat 712,960 504,000 740,000 48,240 $ 2,005,200 Expected Activity Xtreme Pathfinder Total 41,400 70,000 111,400 230 190 420 1 2 NA NA 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. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin $ 0 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate places and "Percentage" answers to 1 decimal place.) Xtreme Total Pathfinder % of % of Amount Total Amount Amount Total Amount Amount Traditional Cost System % % % % % % Total cost assigned to products 0 $ 0 $ 0 Xtreme Pathfinder Total % of % of Prey 1 of 4 Next > JUL 6 g 18 atv A OS Wat % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % % Indirect costs: % % % % % % $ 0 $ $ Total cost assigned to products Costs not assigned to products: Total cost $ 0 Activities and Activity Mensures Supporting direct labor (direct labor-hours) Batch setups (setup) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Expected Activity Overhead Cout Xtrem Pathfinder Total $ 712,960 41,400 70,000 111,400 504,000 230 190 420 740,000 1 1 2 48,240 NA NA NA $ 2,005,200 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.) Xtreme Pathfinder Total $ 0 Product margin Required Required 2 > Prey 1 of 4 !!! Next > Activities and Activity Measure Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost 712,960 504,000 740,000 49,240 $ 2,005,200 Expected Activity Xtreme Rathfinder Total 41,400 70,000 111,400 230 190 420 1 2 NA NA 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. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total 0 Product margin
