The writer is very fast, professional and responded to the review request fast also. Thank you.
Smoky Mountain Corporation makes two types of hiking boots—Xtreme and the Pathfinder. Data concerning these two product lines appear below:
XtremePathfinderSelling price per unit$120.00 $87.00 Direct materials per unit$63.60 $55.00 Direct labor per unit$12.00 $10.00 Direct labor-hours per unit 1.2DLHs 1.0DLHsEstimated annual production and sales 25,000units 72,000units
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$2,040,000 Estimated total direct labor-hours 102,000 DLHs
Required:
1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system. (Do not round your intermediate calculations.)
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):
.
EstimatedActivityActivities and Activity MeasuresOverhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours)$622,200 30,000 72,000 102,000 Batch setups (setups) 644,000 250 210 460 Product sustaining (number of products) 700,000 1 1 2 Other 73,800 NA NA NA Total manufacturing overhead cost$2,040,000
Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative product margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.)
3. Show a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your “Percentage” answer to 1 decimal place
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more