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Rocky Mountain Corporation makes two types of hiking bootsA Xactive and the Pathbreaker Data concerning these two product lines appear below

Rocky Mountain Corporation makes two types of hiking bootsAc€??Xactive and the Pathbreaker. Data concerning these two product lines appear below:

   

  Xactive Pathbreaker
  Selling price per unit $ 118.00   $ 84.00  
  Direct materials per unit $ 65.00   $ 52.00  
  Direct labor per unit $ 13.50   $ 9.00  
  Direct labor-hours per unit   1.5 DLHs   1.0 DLHs
  Estimated annual production and sales   28,000 units   65,000 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 $1,819,000           
  Estimated total direct labor-hours 107,000 DLHs
 

   

Required:
1.

Compute the product margins for the Xactive and the Pathbreaker products under the companyAc€?cs traditional costing system. (Negative customer margins should be indicated with a minus sign.)

Jun 19 2020 View more View Less

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