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  3. the company has a traditional costing system in wh

The company has a traditional costing system in which manufacturing overhead is applied to units...

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Accounting

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The company has a traditional costing system in which manufacturing overhead is applied to units based on direct laborhours. Data concerning manufacturing overhead and direct laborhours for the upcoming year appear below: Required: 1. Using [C6 Exhibit 7-13 as a guide, 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 bystem with an activitybased costing system that would assien its manufacturing ovethead to the following four activity cost pools (the Other cost pool includes organizationsustaining costs and idle capacity costs): Uaing (C) Exhubit 7-11 as a guide, compute the product maryins for the Xtreme and the Pathfinder products under the activity based costing sytem. 3. Uning [G9 Exhibit 7-14 as a guide, prepare a quantitative comparison of the traditional and activitybased cost astignments. Explain why the traditional and activity based cost assignments differ

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