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mash [69]
3 years ago
9

Problem 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Smoky Mountain Corporation ma

kes 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 DLHs 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 $1,980,000 Estimated total direct labor-hours 120,000 DLHs
Required: Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.
Business
1 answer:
Gelneren [198K]3 years ago
4 0

Answer:

product margins for the Xtreme and the Pathfinder is 7.9% and 17.7% respectively.

Explanation:

Estimated total manufacturing overhead $1,980,000 Estimated total direct labor-hours 120,000 DLHs, then manufacturing overhead per hour is $33 = 1,980,000/120,000 = $16.5

Please see the detailed calculation in excel attached.

Download xlsx
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It explicitly incorporates uncertainty in one or more input variables.

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Under this probability of different results in the form of outcomes are evaluated.

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Explain how a company will “go public” by issuing an IPO.
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Why does supply decrease when the price<br> of resources increases?
krek1111 [17]

Answer:

see below

Explanation:

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4 0
3 years ago
If money is paid when a change of ownership in a life insurance policy takes place, this is generally known as a ____________.a.
valina [46]

Answer:

The correct answer is A

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Cash receipts A firm has actual sales of $ 60 comma 000 in April and $ 64 comma 000 in May. It expects sales of $ 75 comma 000 i
nirvana33 [79]

Answer:

Month incurred   Amount     June     July      August

June                     75,000     37500   18,750  18,750

July                       95,000                   47,500  23,750

August                  95,000                                 47,500

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The expected cash receipts are:

June = $37,500

July = $66,250

August = $90,000

Explanation:

The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.

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