ces Check my work 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 $126.00 Pathfinder $91.00 Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 63.20 $11.70 1.3 DLils 21,000 units $ 51.00 $ 9.00 1.0 DLHS 75,000 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 $2,250,600 102,300 Dt.lls 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) Fatinated Expected Activity) Ovirhead Cost Xtrene Pathfinder Total 5767,250 27,300 75,000 102,300 722,000 210 170 380 670,000 1 1 2 NA NA NA Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost 91,350 $2,250,600 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. Prey 1 of 4 Next > 10