Check my Problem 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5) Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Pathfinde Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 128.00 63.10 $ 12.00 $ 90.00 50.00 $ 8.00 1.5 DLHs 1.0 DLHs ces 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 Estinated total direct labor-hours 2,100,000 100,000 DLHS Required 1. Compute the product margins for the Xtreme and the Pathfinder 2. The company is considering replacing its traditional costing system with an activity-based costin manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and products under the company's traditional costing system. capacity costs): K Prev 17 of 18 EE Next>