Smoky mountain corporation makes two types of hiking boots—the xtreme and the pathfinder. data concerning these two product lines appear below: xtreme pathfinder selling price per unit $ 115.00 $ 84.00 direct materials per unit $ 65.50 $ 54.00 direct labor per unit $ 13.60 $ 8.00 direct labor-hours per unit 1.7 dlhs 1.0 dlhs estimated annual production and sales 33,000 units 61,000 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:
compute the product margins for the xtreme and the pathfinder products under the company's traditional costing system.