. Smoky Mountain Corporation makes two types of...
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Accounting
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Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder Data concerning these two product lines appear below. $ 121.00 Selling price per unit Direct materials per unit Direct labor per unit Direct laber-hours per unit Estimated annual production and sales $11.20 1.4 bus 27.000 units $ 51.00 $ 8.00 1.0 DLRS 70,000 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 tatimated total direct laborehours $ 2,156,000 107.900 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) Estimated Overhead Coat $ 700,700 Expected Activity Xtreme Pathfinder Total 37,800 70,000 107,800 Metivities and hetivity Measures Supporting direct labor (direct labor-hours) Batoh setupe (eetups) Product sustaining number of products) Other Total manufacturing overhead coat $ 2,156,000 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 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.) Pathfinder Total 78.300 NA NA Other Total manufacturing overhead cost $ 2,156,000 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. 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 Required 2 >
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