**Smoky Mountain Corporation: Cost Analysis for Xtreme and Pathfinder Hiking Boots**Smoky Mountain Corporation produces two types of hiking boots—the Xtreme and the Pathfinder. Below is the financial and production data for these product lines:### Financial and Production Data- **Xtreme:** - Selling price per unit: $121.00 - Direct materials per unit: $64.70 - Direct labor per unit: $10.80 - Direct labor-hours per unit: 1.2 DLHs - Estimated annual production and sales: 25,000 units- **Pathfinder:** - Selling price per unit: $88.00 - Direct materials per unit: $54.00 - Direct labor per unit: $9.00 - Direct labor-hours per unit: 1.0 DLHs - Estimated annual production and sales: 71,000 units### Traditional Costing SystemThe company uses a traditional costing system where manufacturing overhead is allocated based on direct labor-hours. The projections for the upcoming year are:- Estimated total manufacturing overhead: $2,020,000- Estimated total direct labor-hours: 101,000 DLHs### Required Analysis1. **Compute Product Margins:** Calculate the product margins for Xtreme and Pathfinder using the traditional costing system.2. **Activity-Based Costing System:** The company is considering an activity-based costing system, assigning manufacturing overhead according to four activity cost pools. An additional cost pool includes organization-sustaining costs and idle capacity costs: **Activities and Overhead Costs:** - Supporting direct labor (DLH): - Cost: $606,000 - Activity: Xtreme: 30,000; Pathfinder: 71,000; Total: 101,000 - Batch setups (setups): - Cost: $693,000 - Activity: Xtreme: 360; Pathfinder: 270; Total: 630 - Product sustaining (number of products): - Cost: $700,000 - NA for detailed activity breakout - Other: - Cost: $21,000 - NA for detailed activity breakout - **Total Manufacturing Overhead:** $2,020,0003. **Quantitative Comparison:** Prepare a quantitative comparison of the traditional and activity-based ### Instructions for Assignment**Overview:**This section requires a detailed comparison between traditional and activity-based cost assignments. Specific calculations are necessary, rounded to two decimal places for all numerical answers, and percentage results should be rounded to one decimal place.---### Cost Allocation Table#### Traditional Cost System- **Xtreme and Pathfinder Columns** - Each product (Xtreme, Pathfinder) has an `Amount` column and a `% of Total Amount` column. - There are three rows beneath each product's header to input data: - Row 1: Amount and percentage for first cost category. - Row 2: Amount and percentage for second cost category. - Row 3: Amount and percentage for third cost category. - The `Total` column sums both products’ amounts.- **Total Cost Assigned to Products** - Calculated total costs for Xtreme and Pathfinder, with a combined total displayed.---#### Activity-Based Costing System- **Direct and Indirect Costs for Xtreme and Pathfinder** - Similar structure to the Traditional Cost System with `Amount` and `% of Total Amount` columns for each product. - Separates costs into `Direct Costs` and `Indirect Costs`. - Each section includes: - Two rows for Direct Costs to enter amount and percentage. - Two rows for Indirect Costs to enter amount and percentage.- **Total Cost Assigned to Products** - Totals for cost allocations are summed from direct and indirect costs.- **Costs Not Assigned to Products** - An additional row for costs that do not get assigned to either Xtreme or Pathfinder.- **Total Cost** - A cumulative total including all cost allocations and unassigned costs is calculated at the bottom.---### Navigation and Further Requirements- Use the "Required 2" and "Required 3" tabs to proceed with additional sections of the assignment.Ensure that all calculations are precise, following the rounding instructions provided, to maintain accuracy and meaningful analysis.

Name: **Smoky Mountain Corporation: Cost Analysis for Xtreme and Pathfinder
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: **Smoky Mountain Corporation: Cost Analysis for Xtreme and Pathfinder Hiking Boots**Smoky Mountain Corporation produces two types of hiking boots—the Xtreme and the Pathfinder. Below is the financial and production data for these product lines:### F