Hi, I'm trying to compute product margins using the ABC method. I'm not sure how to begin

Marco Garza Managerial Accounting: Section 02 Chapter 07 Pre-Built Problems 4. instructions | help value: 10.00 points Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: 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 $ 63.60 $ 12.00 1.2 DLHs 25,000 units Pathfinder $ 87.00 $ 55.00 $ 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 $2,040,000 102,000 DLHs 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): Estimated Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Overhead Cost $ 622,200 644,000 700,000 73,800 Total manufacturing overhead cost Expected Activity $ 2,040,000 Xtreme Pathfinder 30,000 72,000 250 210 1 1 NA NA Total 102,000 460 2 NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3)) References eBook & Resources Worksheet Learning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system. Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation. Difficulty: 3 Hard Learning Objective: 07-03 Compute activity rates for cost pools. Learning Objective: 07-05 Use activity-based costing to compute product and customer margins. Check my work 2016 McGraw-Hill Education. All rights reserved. 2016