20 LO5-5] Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below Selling price per unit points stoped Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $121.00 $63.70 Pathfinder $91.00 $56.00 5 8.30 $8.00 1.1 DLS 26,000 units 1.0 DLH 73,000 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 Estimated total direct labor-hours $2,133,600 101,600 DLM 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 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 Activities and (Activity Measures). Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Extinated Overhead Cost $629,920 Xtree Expected Activity Pathfinder Total 28,000 73,000 763,000 260 220 101,000 480 710,000 1 1 2 25,660 NA NA $ 2,133,600 Mc Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Note: Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place. Pathfinder % of Total Total Amount Xtreme % of Total Amount Amount Amount Traditional Cost System Amount Total cost assigned to products $ 0 $ $ 0 Xtreme Pathfinder % of % of Total Amount "Amount Activity-Based Costing System Total Amount Amount Total Amount Direct costs Indirect costs Total cost assigned to products Costs not assigned to products: $ 0 $ 0 $ 0