3 requirement questions

Chapter 7 Graded Problems Help 2 Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below 99.00 53.00 Selling price per unit Direat materials per unit Direct 1labor per unit Direct labor- Estinated annual produetion and sales $140.00 s 72.00 24.00 points 12.00 per unit 2.0 DIEs 20,000 units 1.0 DLE 80,000 units The company has a traditional costing system which concerning manufacturing overhead and direct labor-hours for the upcoming year appear below. in which manufacturing overhead is applied to units based on direct labor-hours. Deta Entinated total manufacturing overhead Estimated total direat labor-hours 1,980,000 120,000 DLHS 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 overheed to the following four activity cost pools the Other cost pool includes organization-sustaining costs and idle capacity costs): Eatinated Overhead Cost Xtrone PathfinderTotal Expected Aetivity vities and Aetivity Measures Gupporting direet labor (direct labor-hours) Batch setups (setups) Produet sustaining (number of producta) 783,600 40,000 80,000 120,000 495,000 602,400 99,000A 200 100 300 Other NA Total sanufacturing overhead cost 1,980,000 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 Prev 2015 Next >