Compute the product margins for the Xtreme and the Pathfinder products under the compnays traditional costing system.

Problem 7-17 (Static) Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, LO7-5) Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 140.00 599.00 Direct materials per unit $72.00 $ 53.00 Direct labor per unit $ 24.00 $ 12.00 Direct labor-hours per unit 2.0 DLS 1.0 DLHO Estimated annual production and sales 20,000 units 80,000 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 $ 1,980,000 Estimated total direct labor-hours 120,000 DLS 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): 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) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 783,600 495,000 602,400 99,000 $ 1,980,000 Expected Activity Xtreme Pathfinder Total 40,000 80,000 120,000 200 100 300 1 1 2 NA NA Compute the product margins for the Xtreme and the Pothfinder products under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Xtreme Pathfinder Total Product margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Product margin Total 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage answers to 1 decimal place.) Xtreme % of Pathfinder % of Amount Total Amount Total Amount Amount Total Amount Traditional Cost System Total cost assigned to products Xtreme Pathfinder % of Total Amount Amount % of Total Amount Total Amount Amount Activity Based Costing System Direct costs Xtreme Pathfinder Total Amount % of Total Amount % of Total Amount Amount Amount Traditional Cost System Total cost assigned to products Xtreme Pathfinder Total Amount % of Total Amount o Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost