Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Supporting direc $ 10 hour Activity Cost Pool Activity Rates Supporting direct la per direct labor- labor Machine processing $ 4 per machine-hour Machine setups $ 40 per setup Production orders $170 per order Shipments $130 per shipment Product sustaining $850 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1,100 30 2,200 2 19 19 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead Xtreme Pathfinder Selling price per unit $120.00 $ 92.00 Direct materials per unit $ 63.50 $ 54.00 Direct labor per unit $ 13.50 $ 9.00 Direct labor-hours per 1.5 DLHS 1.0 DLHS unit Estimated annual 24,000 units 71,000 units production and sales 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 $2.033.000 overhead Estimated total direct labor- 107,000 DLHS hours 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) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 663,400 572,000 750,000 47,600 $2,033,000 Expected Activity Xtreme Pathfinder Total 36,000 71,000 107,000 240 200 440 1 1 2 NA NA NA Compute the product margins for the Xtreme and the Pathfinder 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 Required Required 12 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.) Show less Xtreme Pathfinder Total Product margin Required 1 Required 2 > Complete is quesLIUNI Dy enery your duiswers III Le laus Veluw. Required Required Required 2 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin Required Required Required Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places.) Total Xtreme % of Total Pathfinder % of Total Amount Amount Amount Amount Amount Traditional Cost System Total cost assigned to products $ 0 0 Total Xtreme % of Total Amount Amount Pathfinder % of Total Amount A Amount Amount Activity-Based Costing System Direct costs: I % % % Indirect costs: lo $ 0 | $ Total cost assigned to products Costs not assigned to products: Total cost $ 0