Direct materials per unit purposes 3. Smoky Mountain Corporation makes two types of hiking boots-B20 and...

Transcribed Image Text:

Direct materials per unit purposes 3. Smoky Mountain Corporation makes two types of hiking boots-B20 and T50. Data concerning these two product lines appear below: Selling price B20 $100 T50 $100 $32 $18 Direct labor per unit $15.00 Estimated annual production and sales . . . . 7,000 units $15.00 8,000 units Activities and Activity Measures Overhead Cost B20 T50 Total Batch setup (number of setups) $72,000 150 250 400 Special-processing(machine hours) $2,00,000 1000 4000 5000 General Factory 8,16,000 NA NA NA Required: Compute product margin for B20 under the activity-based costing system. (4) Direct materials per unit purposes 3. Smoky Mountain Corporation makes two types of hiking boots-B20 and T50. Data concerning these two product lines appear below: Selling price B20 $100 T50 $100 $32 $18 Direct labor per unit $15.00 Estimated annual production and sales . . . . 7,000 units $15.00 8,000 units Activities and Activity Measures Overhead Cost B20 T50 Total Batch setup (number of setups) $72,000 150 250 400 Special-processing(machine hours) $2,00,000 1000 4000 5000 General Factory 8,16,000 NA NA NA Required: Compute product margin for B20 under the activity-based costing system. (4)