Compute the product margins for the xtreme

Assignment Help Accounting Basics
Reference no: EM131811256

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

Xtreme

Pathfinder

Selling price per unit

$ 140.00

$ 99.00

Direct materials per unit

$ 72.00

$ 53.00

Direct labor per unit

$24.00

$ 12.00

Direct labor-hours per unit

2.0 DLHS

1.0 DHLS

Estimated annual production and sales

20,000 units

80,000 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   $2,033,000

Estimated total direct labor-hours   107,000 DLHs

Required:

1. Using Exhibit 6-13 as a guide Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system.

1. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs)

Reference no: EM131811256

Questions Cloud

Describe the it project you proposed for fwdc : This assignment gives you the opportunity to apply the course concepts to develop an IT Decision Paper to explain and defend an IT project
Complete a personal marketing plan : You will apply what you have learned about marketing to develop a Personal Marketing Plan presentation using PowerPoint
What is the current break-even point in units : The manager of Calypso, Inc. is considering raising its current price of $35 per unit by 10%. What is the current break-even point in units
Relevant features of the five hedge fund : What are the pros & cons and other relevant features of the five hedge fund indices and when should they be used?
Compute the product margins for the xtreme : Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system
What is the next most important problem : A tractor manufacturing plant has been experiencing problems with the division that makes the transmissions. A Pareto diagram, shown in Fig.
Compute the variable overhead rate and efficiency variances : Koontz Company manufactures a number of products. Compute the Variable overhead rate and efficiency variances
What is person debt payments-to-income ratio : Enter your calculation and response in this column. What is this person's debt payments-to-income ratio?
Draw a pareto diagram for the given situation : A firm specializing in the processing of rebate certificates has tabulated the frequency of occurrence of various types of problems, as shown in Table.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd