Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data...
Question:
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 | 2.0DLHs | 1.0DLHs |
| 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 |
Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system.
Predetermined Overhead Rate:
The predetermined overhead rate is the rate that is used to apply the overhead costs to products manufactured. In the traditional costing system, the predetermined rate is usually based on direct labor hours or machine hours.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer
We must first calculate the predetermined overhead rate,
| Estimated overhead cost | $1,980,000 |
| Estimated overhead driver | 120,000 DLHs |
| Predetermined... |
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Comparing Traditional Costing & Activity-Based Costing
from
Chapter 7 / Lesson 6
8.4K
Traditional and activity-based costing methods have similarities and differences based on the production methods of a company. Learn about the costs in production and see the comparisons between traditional and activity-based costing systems.
Related to this Question
- 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 $120.00 $90.00 Dir
- 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 $ 125.00 $ 91.00 D
- 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 ; $ 141.00 ;
- 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
- 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 $115 $84 Direct mat
- 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 manu
- Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below:
- Smoky Mountain Corporation makes two types of hiking boots?Xtreme and the Pathfinder. Data concerning these two product lines appear below: Smoky Mountain Corporation makes two types of hiking boots?X
- Fleet Valley Shoes produces two models: the N*100 (a shoe aimed at competitive runners) and the Mx100 (a shoe aimed at fitness buffs). Sales and costs for the most recent year are indicated: N*100 M*
- Bechtel Technical Clothing produces parkas used by arctic explorers, mountain climbers, and people living in Minnesota. The company uses a standard costing system, and standards call for 2.5 yards of
- K-Too Everwear Corporation manufactures two styles of mountain climbing shoes for women: Regular and fashion styles. A pair of regular-style shoes sell for $135, while fashion-style shoes sell for $160 per pair. The variable cost per pair for regular shoe
- Billings Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price$44.11$56.11 Variable costs$20.11$26.71 Machine hours0.50
- Nazaro's Boot Company makes specialty boots for the rodeo circuit. On December 31, 2016, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,400 heels at a cost of $15 each in
- Nazaro's Boot Company makes specialty boots for the rodeo circuit. On December 31, 2014, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,400 heels at a cost of $16 each in
- Nazaro's Boot Camp Company makes specialty books for the rodeo circuit. On December 31, 2014, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,200 heels at a cost of $8 eac
- Outdoor Adventures, Inc. offers guided jeep tours for small groups in Denali National Park. The company bases its budget on two cost drivers: jeeps and guests. Data concerning the company's costs is as follows: || ||Fixed Cost per Month||Cost per Jeep||Co
- Sierra Lumber Company produces lumber. The company has two grades of lumber at the split-off point, A and B. Grade A sells for USD 4 per board foot and Grade B sells for USD 2 per board foot. This lum
- Trailblazer produces two types of hiking boots: the men's boot and the women's boot. The two types of boots are similar except that the women's boots are more stylish. Both types are made using the same machines. It takes 15 minutes of machine time to pro
- Pronghorn Corp sells a snowboard, EZsIide, that is popular with snowboard enthusiasts. Below is information relating to Pronghorn Corp's purchases of EZsIide snowboards during September. During the sa
- Flint Corporation sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Flint Corporation's purchases of EZslide snowboards during September. During
- The Regal Cycle Company manufactures three types of bicycles - a dirt bike, a mountain bike and a racing bike. Data on sales and expenses for the past quarter are as follows: Total Dirt Bikes Mountain
- The Regal Cycle Company manufactures three types of bicycles - a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes
- Mountain Fun manufactures snowboards. Its cost of making 2,000 bindings is as follows: [TABLE] Lewis will sell bindings to Mountain Fun for $12 each. Mountain Fun would pay $1 per unit to transport the bindings to its manufacturing plant, where it would a
- NRG Company makes and sells vehicles at its company-owned dealership. Categorize their costs below by making an "X" in all applicable categories. Cost DM DL MOH Period Prime Conversion Factory utilit
- Outdoor Luggage, Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $260 $270 $305 Variable cost per unit $130 $1
- Buffalo Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Buffalo Corp.?s purchases of EZslide snowboards during September. Du
- The Regal Cycle Company manufactures three types of bicycles - a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:
- Outback Outfitters sells recreational equipment. One of the company?s products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the
- Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $230 $320 $275 Variable cost per unit $80 $16
- Bellingham Company produces a product that requires 8 standard pounds per unit. The standard price is $6.5 per pound. If 3,000 units required 24,500 pounds, which were purchased at $6.37 per pound, wh
- The Regal Cycle Company manufactures three types of bicycles - a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow Required: 1. What is the financ
- Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price$43$52 Variable costs$15.00$24.80 Machine hours0.700.80
- Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $320 $320 $275 Variable cost per unit $110 $1
- On October 1, 2011, Atherton Fuel Corp. purchased new equipment from Acme Equipment Company that had a purchase price (including sales tax) of $76,245. Acme charged $1,700 to deliver the equipment and $6,800 to install it at Atherton Fuel's site. Atherton
- Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appears below. Ski GuardGolf GuardFishing Guard Selling price per
- Newport Manufacturing makes and sells backyard fire pits. Each fire pit regularly sells for $269. The following cost data per unit are based on a full capacity of 3,000 fire pits produced each period.
- X-Cee-Ski Company recently expanded its manufacturing capacity, which will allow it to produce up to 21,000 pairs of cross-country skis of the mountaineering model or the touring model. The Sales Depa
- Notaro's Boot Company makes specialty boots for the rodeo circuit. On December 31, 2012, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,300 heels at a cost of $18 each in
- Billings Company manufactures and sells two products. Relevant per unit data concerning each product follow: | |Basic Product|Deluxe Product |Selling price|$43.65|$54.10 |Variable Costs|$13.65|$19.70
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $161,700 per month. Required: 1. What is t
- Pharoah Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Pharoah Company's purchases of EZslide snowboards during September. During the
- Downstream Intercompany Merchandise Transactions Sketchy Shoes is a subsidiary of Pacific Brands. Pacific routinely sells merchandise to Sketchy at a 25% markup on cost. Information on intercompany me
- Pecos Athletics and its subsidiary, Stetson Footwear, engage in intercompany transactions as follows Pecos sells merchandise to Stetson at a markup of 35% on cost. In 2018, Pecos sold merchandise to S
- Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure ge
- Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price
- Martin's Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure
- The Regal Cycle Company manufactures dirt bikes, mountain bikes, and racing bikes. Data on sales and expenses for the past quarter follow: Management is concerned about the
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Ra
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes R
- Sage Logging and Lumber Company owns 2,930 acres of timberland on the north side of Mount Leno, which was purchased in 2005 at a cost of $570 per acre. In 2017, Sage began selectively logging this tim
- Oakridge Lumber Company incurs a cost of $412 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $586 per hundred board feet. An alternative is to produce a "finished
- Sierra Lumber Company produces lumber. The company has two grades of lumber at the split-off point, A and B. Grade A sells for $4 per board foot and Grade B sells for $2 per board foot. This lumber is suitable for framing and most exterior work but not fo
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $927,000 $267,000 $406,000 $254,000 Va
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $921,000 $261,000 $400,000 $260,000 Va
- The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount ($) Sales $861,000 Selling price per pair of skis $410 Variable selling expense per pair of skis $50 Variabl
- Alpha Company produces and sells two products: Alpha-Basic and Alpha-Deluxe. In the coming year, Alpha expects to sell 3,000 units of Alpha-Basic and 1,500 units of Alpha-Deluxe. Information on the two products is as follows: Alpha-Basic Alpha-Deluxe Pric
- On March 10, 2017, Wildhorse Company sold to Barr Hardware 210 tool sets at a price of $52 each (cost $31 per set) with terms of n/60, f.o.b. shipping point. Wildhorse allows Barr to return any unused
- Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are provided in the table below.
- The Regal Cycle Co. manufactures three types of bicycles: a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:
- Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike Corp. has declared the following annual dividends over a six-year period ended December 31 of each year: 2009,
- Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike Corp. has declared the following annual dividends over
- The Regal Cycle Company manufactures three types of bicycles a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $926,000 $261,000 $410,000 $255,000 Va
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $932,000 $269,000 $409,000 $254,000 Va
- The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter that ended March 31: Amount ($) Sales 1,240,000 Selling price per pair of skis 400 Variable selling expense per pair of skis 47 Var
- Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $61 per unit. Because of competitive pressures, the company had to cut selling prices by 10% durin
- Joseph A. Bobcat Company operates a chain of men's clothing stores that sells 10 different styles of inexpensive men's suits with identical unit costs and selling prices. A unit is defined as one suit
- Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $700 each. An independent company would handl
- Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter's operations. |Machine setup, indirect materials|$ 4,000 | I
- The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $1,280,000 Selling price per pair of skis $400
- The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $1,428,000 Selling price per pair of skis $420
- Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw materlal that costs $5 per pound. The company has the cap
- Diamond Boot Factory normally sells their specialty boots for $30 a pair. An offer to buy 95 boots for $25 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $11 and special stitching will add another $
- Cheyenne Engineering Corporation purchased conveyor equipment with a list price of $9,300. Presented below are three independent cases related to the equipment. |(a) Cheyenne paid cash for the equipm
- Sport Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Vault Golf Caddy Fishing Quiver Selling price p
- Pharoah Company sells a snowboard, EZ slide that is popular with snowboard enthusiasts. Below is information relating to Pharoah Company's purchases of EZ slide snowboards during September. During the
- Jose Ruiz wants to start a company that makes snowboards. Competitors sell similar snowboards for $345 each. Jose believes he can produce a snowboard for a total cost of $270 per unit, and he plans a 30% markup on his total cost. a. Compute Jose's planne
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $924,000 $261,000 $407,000 $256,000 Va
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $930,000 $265,000 $408,000 $257,000 Va
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $197,400 per month. Required: 1. What is t
- Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $201,600 per month. Required: 1. What is t
- The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $923,000 $261,000 $405,000 $257,000 Va
- King Company sells a special putter for $20 each. In March, it sold 28,000 putters while manufacturing 30,000. There was no beginning inventory on March 1. Production information for March was: | Direct manufacturing labor per unit | 15 minutes | Fixed
- Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes a costing system with the following activity cost
- Special Order: High-Low Cost Estimation SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 300,000 units per year,
- The Regal Cycle Company manufactures three types of bicycles - a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Management is concerned about th
- The Regal Cycle Company manufactures three types of bicycles a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Management is concerned about the
- Palo Alto Corporation is considering purchasing a new delivery truck. The truck has advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $56,7
- Coronado Engineering Corporation purchased conveyor equipment with a list price of $10,900. Presented below are three independent cases related to the equipment. (a) Coronado paid cash for the equipme
- Waterway Corp. sells a snowboard, Elide that is popular with snowboard enthusiasts. Below is information relating to Waterway Corp.'s purchases of EZ slide snowboards during September During the same
- Mt. Hood Air offers scenic overflights of Mt. Hood and the Columbia River Gorge. Data concerning the company's operations in August appear below: The company measures its activity in terms of flights.
- Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following inform
- Sako Companys Audio Division produces a speaker that is used by manufacturers of various audio products Sales and cost data on the speaker follow Sako Company has a HiFi Division that could use this
- Tundra Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sale
- Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 8,400 units per year for $7 each. Mohave has the following information about its own
- Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 9,900 units per year for $10.5 each. Mohave has the following information about its o
- A sporting goods manufacturer budgets production of 58,000 pairs of ski boots in the first quarter and 49,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2 kg of key raw material. The company aims to end each quarter with
- A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2kg of a key raw material. The company aims to end each quarter with
- Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 9,700 units per year for $8.5 each. Mohave has the following information about its ow
- A sporting goods manufacturer budgets production of 55,000 pairs of ski boots in the first quarter and 46,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2 kg of a key raw material. The company aims to end each quarter wit
- On March 10, 2017, Nash Company sold to Barr Hardware 160 toolsets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Nash allows Barr to return any unused toolsets within 60 days of purchase. Nash estimates that (1) 10 s
Explore our homework questions and answers library
Browse
by subject