Ames Trading Co. has the following products in its Quantity Cost per Unit $ 600 Product Mountain bikes 11 Skateboards 13 350 Gliders 26 800

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 $ 132.00   $ 94.00   Direct materials per unit $ 64.60   $ 53.00   Direct labor per unit $ 9.60   $ 8.00   Direct labor-hours per unit   1.2 DLHs   1.0 DLHs Estimated annual production and sales   24,000 units   70,000 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 $ 2,470,000   Estimated total direct labor-hours   98,800 DLHs     Required: 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…

Fairmount Travel Gear produces backpacks and sells them to vendors who sell them under their own label. The cost of one of its backpacks follows.          Materials $ 19.60   Labor   13.60   Variable overhead   6.60   Fixed overhead ($3,541,600 per year; 466,000 units per year)   7.60   Total $ 47.40       Riverside Discount Mart, a chain of low-price stores, has asked Fairmount to supply it with 35,000 backpacks for a special promotion Riverside is planning. Riverside has offered to pay Fairmount a unit price of $52 per pack. The regular selling price is $76. The special order would require some modification to the basic model. These modifications would add $5.60 per unit in material cost, $3.10 per unit in labor cost, and $2.10 in variable overhead cost. Although Fairmount has the capacity to produce the 35,000 units without affecting its regular production of 466,000 units, a one-time rental of special testing equipment to meet Riverside’s requirements would be…

Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below:   A1 A2 A3 Total Selling price per unit $200 $500 $1 000   Variable cost per unit $60 $250 $600   Expected unit sales (annual) 15,000 7,000 2,000 24,000 Sales mix 60 percent 30 percent 10 percent 100 percent Total annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales. Required:  SHOW YOUR WORKINGS FOR ALL SECTIONS   How many units of each furniture type must be sold to break even?