### Cost Analysis for Xtreme and Pathfinder Products#### Activity-Based Costing System Overview**Activities and (Activity Measures):**1. **Supporting Direct Labor (direct labor-hours):** - Estimated Overhead Cost: $556,000 - Expected Activity: - Xtreme: 51,200 hours - Pathfinder: 60,000 hours - Total: 111,200 hours2. **Batch Setups (setups):** - Estimated Overhead Cost: $770,000 - Expected Activity: - Xtreme: 430 setups - Pathfinder: 340 setups - Total: 770 setups3. **Product Sustaining (number of products):** - Estimated Overhead Cost: $400,000 - Expected Activity: - Xtreme: 1 product - Pathfinder: 1 product - Total: 2 products4. **Other Costs:** - Estimated Overhead Cost: $53,200**Total Manufacturing Overhead Cost: $1,779,200**---### Instructions for Calculations1. **Compute the product margins for Xtreme and Pathfinder under the activity-based costing system.**2. **Prepare a quantitative comparison of the traditional and activity-based cost assignments.**---### Required CalculationsFor computing purposes, follow these steps:1. **Compute the product margins for Xtreme and Pathfinder under the company's traditional costing system.** - **Note:** Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. | | Xtreme | Pathfinder | Total | |-----------------|--------|------------|-------| | Product Margin | $ | $ | $ 0 |---Complete your answers by selecting the required tabs and inputting the data accordingly. ### Smoky Mountain Corporation: Costing System Analysis**Product Lines Overview:**Smoky Mountain Corporation manufactures two types of hiking boots: Xtreme and Pathfinder. Below are the financial details for each product line:| Cost Component | Xtreme | Pathfinder ||------------------------------|------------|------------|| Selling price per unit | $115.00 | $85.00 || Direct materials per unit | $65.40 | $53.00 || Direct labor per unit | $16.00 | $10.00 || Direct labor-hours per unit | 1.6 DLHs | 1.0 DLH || Estimated annual production | 32,000 units | 60,000 units |**Traditional Costing System:**The company uses a traditional costing system, applying manufacturing overhead based on direct labor-hours. Below are the overall estimates:- **Estimated total manufacturing overhead:** $1,779,200- **Estimated total direct labor-hours:** 111,200 DLHs**Required Analysis:**1. Calculate the product margins for Xtreme and Pathfinder using the traditional costing system.2. Consider an activity-based costing system that assigns manufacturing overhead to the following four activity cost pools: **Activity Cost Pools:** | Activity | Estimated Overhead Cost | Xtreme Expected Activity | Pathfinder Expected Activity | Total Expected Activity | |---------------------------------|--------------------------|--------------------------|-----------------------------|------------------------| | Supporting direct labor | $556,000 | 51,200 DLHs | 60,000 DLHs | 111,200 DLHs | | Batch setups | $770,000 | 430 setups | 340 setups | 770 setups | | Product sustaining | $400,000 | 1 product | 1 product | 2 products | | Other | $53,200 | NA | NA | NA | | **Total manufacturing overhead** | **$1,779,200** | | | |**Objective:**- Compute the product margins for Xtreme and Pathfinder under the activity-based costing system.By analyzing these distinctions in costing methods, the company aims to enhance its cost management and pricing strategies.

Name: ### Cost Analysis for Xtreme and Pathfinder Products#### Activity-Bas
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ### Cost Analysis for Xtreme and Pathfinder Products#### Activity-Based Costing System Overview**Activities and (Activity Measures):**1. **Supporting Direct Labor (direct labor-hours):** - Estimated Overhead Cost: $556,000 - Expected Activity: