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Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data al and Ac


Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data al and Activity-Based Product Marg Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data al and Activity-Based Product Margins concerning these two product lines appear below Selling price per unit... Direct matorials per unt. Direct labor per unit. Direct labor-hours pof unt Xtreme Pathfinder $140.00 $72.00 $24.00 $99.00 $53.00 $12.00 Estimated annual productioñ and sales 1.0 DLHs 2.0 DLHS 20,000 unlts 80,000 uhlts 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 Estimatod total manufacturing overhead.... Estimated total direct labor-hours... $1,980,000 120,000 DLHS Required: 1. Compute the product margins for the Xtreme and the Path-finder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an adtivity- 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 20,00 idle capacity costs): Using Exhibit 6-11 as a guide, compute the product margins for the Xtreme and the Path-finder products under the activity-based costing system 12K2 x20 16.5 DottR ,960,000 Expected Activity Estimated Activities (and Activity Measures) Overhead Cost Xtrome Pathfinder Total 120,000 5 Supporting direct labor (direct labor-hours).... $783,600 40,000 80,000 1650 200 100 300 495,000 Batch setups (setups) 2 30120D 1 1 602.400 Product sustalning (number of products).. NA 99,000 NA NA Other ++ $1,980,000 Total manufacturing overhead cost.....

Apr 03 2020 Read more Less More

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