Complete this queslion by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for Xtreme and Pathnder under the company's traditional costing system. Note: Round your intermediate calculations to 2 decimal places and nal answers to the nearest whole dollar amount. _ Required 2 > Complete this queslion by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins For Xtreme and Pathnder under the activity-based costing system. Note: Negative product margins should be indicated by a minus Sign. Round your intermediate calculations to 2 decimal places. _ { Required1 Required > \fProblem 7-17 (Static) Comparing Traditional and Activity-Based Product Margins [LO7-1. LOT-3. LOT-4. LOT-5] Smoky Mountain Corporation makes two types of hiking bootsXtreme and Pathfinder. Data concerning these two product lines appear below: )(tr'eme Pathfinder Selling price per unit $ 146.66 $ 99.96 Direct materials per unit $ ?2.66 $ 53.96 Direct labor per unit $ 24.66 $ 12.96 Direct labor-hours per' unit 2.6 D-LHs 1.6 DLH Estimated annual production and sales 29,666 units 36,996 units The company has a traditional costing system that applies manufacturing overhead to units based on direct laborhours. Data concerning manufacturing overhead and direct laborhours for the upcoming year appear below: Estimated total manufacturing overhead $ 1,986,996 Estimated total direct laborhours 126,696 DLHs Required: 1. Compute the product margins for Xtreme and Pathfinder underthe company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activitybased costing system that would assign its manufacturing overhead to the following four activity cost pools [the Other cost pool includes organizationsustaining costs and idle capacity costs): Estimated Expected Activity Activities and (Activity Measures) Overhead Cost Xtreme Pathfinder Total Supporting direct labor [direct labor-hours} $ 383,666 46,966 36,699 126,666 Batch setups (setups) 495,666 266 199 366 Product sustaining (number of products) 692,466 1 1 2 Other 99', (36-6 NA NA NA Total manufacturing overhead cost $ LQBQJGGB Compute the product margins for Xtreme and Pathfinder underthe activitybased costing system. 3. Prepare a quantitative comparison ofthe traditional and activitybased cost assignments