0.2 points skipped eBook Hint Print Rafe rences Check my work Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathnder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit 55 125.89 5! 91.99 Direct materials per unit $ 64.28 5 55.88 Direct labor per unit 3 16.89 5 18.98 Direct laborshours per unit 1.6 DLHs 1.8 DLHs Estimated annual production and sales 25,669 units 71,898 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct laborhours. Data concerning manufacturing overhead and direct laborhours for the upcoming year appear below: Estimated total manufacturing overhead $ 2,331,639 Estimated total direct labor-hours 111, 636 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathnder products under the company's traditional costing 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): Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor [direct laborshours) $ 888.398 46.988 71,898 111,839 Dafr'h cahmc {cafllnc' :9? man 11m oon Em 0.2 points Shipped eBDok Hint Print Refe re nces Required: 'I. Compute the product margins for the Xtreme and the Pathnder products under the company's traditional costing 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]: Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 838.666 46.666 71.666 111,666 Batch setups (setups) 533,666 316 226 536 Product sustaining (number of products) 766,666 1 1 2 Other 36, 666 NA NA NA Total manufacturing overhead cost $ 2,331,666 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activitybased cost assignments. 6 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder 0.2 % of % of Total Amount points Total Total Amount Amount Amount Amount Skipped Traditional Cost System eBook Total cost assigned to products $ 0 $ 0 Xtreme Pathfinder Hint % of % of Total Amount Total Total Amount Amount Amount Amount Print Activity-Based Costing System Direct costs: References Indirect costs: Total cost assigned to products $ $ 0 $ 0 Costs not assigned to products: Total cost $ 0