The company is considering replacing its traditional costing system with an acti

Question

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): Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative amount should be indicated by a minus sign. Do not round your intermediate calculations. Omit the "$" sign in your response.)

Explanation / Answer

Hi,

Please find calculations below:

2648480

Thanks,

Aman

Xtreme Pathfinder Total Sales 2983000 8424000 11407000 Direct materials 1121000 2592000 3713000 Direct labor 380000 2160000 2540000 Supporting direct labor 221540 1259280 1480820 Batch setups 170500 294500 465000 Product sustaining 139925 419775 559700 Product margin 950035 1698445

2648480

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