Business, 13.03.2020 05:57 ajay67

1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.2. 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): EstimatedOverhead CostExpected ActivityActivities and Activity direct labor (direct labor-hours)$646,600 33,00073,000106,000Batch setups (setups) 969,000 330240570Product sustaining (number of products) 780,000 112Other 42,400 NANANATotal manufacturing overhead cost$2,438,000 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

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1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s tradit...

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