4.3 Homework Set CH 07 i Saved 3 2.4 points 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 Xtreme Pathfinder $ 120.00 $ 90.00 Direct materials per unit $ 64.10 $ 53.00 Direct labor per unit $ 13.50 $ 9.00 Skipped Direct labor-hours per unit Estimated annual production and sales 1.5 DLHS 30,000 units 1.0 DLHS 70,000 units eBook 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 Help Save & Exit Check my 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 Captured scre capacity costs): Estimated Expected Activity Overhead Cost Xtreme Pathfinder Total 977,500 45,000 70,000 612,000 300 210 115,000 510 700,000 1 1 2 10,500 NA NA NA $ 2,300,000 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) $ Product sustaining (number of products) Other Total manufacturing overhead cost 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.