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Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below:

	Xtreme			Pathfinder
Selling price per unit	$	138.00		$	90.00
Direct materials per unit	$	64.40		$	51.00
Direct labor per unit	$	13.50		$	9.00
Direct labor-hours per unit		1.5	DLHs		1.0	DLHs
Estimated annual production and sales		22,000	units		73,000	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	$	2,438,000
Estimated total direct labor-hours		106,000	DLHs

Required

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.

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BELOW ARE MORE INFO FROM REQUIRED Q.1 AND Q.2

Pathfinder Total Xtreme %of %of Amount Total Amount Amount Total Amount Amount Traditional Cost System Total cost assigned to products Pathfinder Total Xtreme %of %of Amount Total Amount Amount Amount Total Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost Pathfinder Total Xtreme %of %of Amount Total Amount Amount Total Amount Amount Traditional Cost System Total cost assigned to products Pathfinder Total Xtreme %of %of Amount Total Amount Amount Amount Total Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost

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