b. Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: The company has a traditional costing system in which manufacturing overhead is applied to units based on direct laborthours Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system, (4 marks) 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), (4 marks) Expected Actlvity Estimeted Overhead Actlvitles and (Activlty Measures) Cost Xureme Pathinder Total Supporting cllrect labor (dlrect labor- $703,08037,40076,000113,400 hours) Batch setups (setups) 480,000220180400 \begin{tabular}{llll} Product sustaining (number of products) & 700.000 & 1 & 2 \\ \hline \end{tabular} Other 44.720 NA NA NA Total manufacturing overhead cost 3. Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (4 marks)