Compose the product margins for the Xtreme and the Pathfinder products under the companys traditional costing system.

Compose the product margins for the Xtreme and the Pathfinder products under the activity-based costing system

Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 120.00 $ 64.80 $ 13.00 1.3 DLHS 26,000 units Pathfinder $ 80.00 $ 50.00 $ 10.00 1.0 DLHS 72,000 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 $ 1,904,400 105,800 DLHs 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) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 581,900 650,000 600,000 72,500 $ 1,904,400 Expected Activity Xtreme Pathfinder Total 33,800 72,000 105,800 370 280 650 1 1 2 NA NA NA Xtreme Pathfinder Total Product margin $ 0 Xtreme Pathfinder Total Product margin $ 0 Xtreme Total % of Pathfinder % of Amount Total Amount Amount Total Amount Amount Traditional Cost System % % % % % % Total cost assigned to products $ 0 $ 0 $ 0 Xtreme Pathfinder Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % % Indirect costs: % % % % % % $ 0 $ 0 $ 0 Total cost assigned to products Costs not assigned to products: Total cost $ 0