Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfi

Question

Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below: 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: Calculate the predetermined overhead rate. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Negative amount should be indicated by a minus sign. Round your predetermined overhead rate to 2 decimal places. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Explanation / Answer

Hi, Please find answers below: Part A: Predetermined Overhead Rate: 4419600/254000 = 17.4 Part B: Xtreme Sales (19000*157) = 2983000 -Direct Material (19000*59) = 1121000 -Direct Labor (19000*20) = 380000 -Manufacturing Overhead (19000*2*17.4) = 661200 Profit Margin = 820800 Pathfinder Sales (72000*117) = 8424000 -Direct Material (72000*36) = 2592000 -Direct Labor (72000*30) = 2160000 -Manufacturing Overhead (72000*3*17.4) = 3758400 Profit Margin = -86400 or we would say loss. Thanks, Aman

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.