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lines appear below Xtreme Pathfinder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and

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lines appear below Xtreme Pathfinder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $116.00 64.00 12.00 80.00 $52.00 $ 8.00 1.5 DLHS 1.0 DLHS 29,000 units 76,800 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 $1,912,800 Estimated total direct labor-hours 119,580 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 Overhead Cost Xtreme Pathfinder Total Expected Activit Activities and Activity Measures Supporting direct labor (direct labor- hours) Batch setups (setups) Product sustaining (number of products) Other 693,100 43,500 76,000 119,580 539,e00 290 640,880 39,90NA 200 490 NA NA Total manufacturing overhead cost $1,912,000 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system

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