Rocky mountain corporation makes two types of hiking boots

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Rocky Mountain Corporation makes two types of hiking boots-Xactive and the Pathbreaker.

1.Using Exhibit 6-12 as a guide, compute the product margins for the Xactive and the Path breaker products under the company's traditional 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): Usin Exhibit 6-10 as a guide, compute the prduct margins for the Xactive and the pathbreaker products under the activity based costing system.

3. Using Exhibit 6-13 as a guide, prepare a quantitative comparison of the traditional and activity-based cost assignments.

Reference no: EM131116875

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