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Smoky mountain corp. makes two types of hiking boots Xtreme and the Pathfinder, Data concerning these two product lines appear below:
Selling price per unit
Direct materials per unit
Direct labor per unit
Direct labor-hours per unit
Estimated annual production
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
Estimated total direct labor hours
Activities and Activity Measures
Supporting direct labor (direct labor hours)
Batch setups (setups)
Product sustaining (number of products)
Total manufacturing overhead cost
Compute the product margins for the Xtreme and the Pathfinder products under the activity based costing systems.