3 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 $ 120.00 $ 90.00 5 Direct materials per unit $ 64.10 $ 53.00 Direct labor per unit $ 13.50 $ 9.00 ipped Direct labor-hours per unit Estimated annual production and sales 1.5 DLHS 30,000 units 1.0 DLHS 70,000 units Book Print 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 $2,300,000 115,000 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 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 Estimated Overhead Cost Expected Activity Supporting direct labor (direct labor-hours) Batch setups (setups) $ 977,500 612,000 Xtreme Pathfinder 45,000 70,000 300 Total 115,000 210 Product sustaining (number of products) 700,000 1 1 510 2 Other 10,500 NA NA NA Total manufacturing overhead cost $ 2,300,000 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 activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Check my work