Need help with question 3

Problem 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, L07-4, LO7-5] Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Pathfinder $ 88.00 $ 53.00 $ 8.00 Xtreme Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 124.00 S 63.40 $ 14.40 1.8 DLHs 1.0 DLHs 23,000 units 70,000 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 $ 2,005,200 111,400 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 Expected Activity Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups(setups) Product sustaining (number of products) Other Total manufacturing overhead cost Overhead Cost Xtreme Pathfinder Total 111,400 420 $712,960 504,000 740,000 48,240 $2,005,200 41,400 70,000 190 230 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 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder Total %of %of Amount Total Amount Amount Total Amount Amount Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products 0 0 Xtreme Pathfinder Total %of %of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs Direct materials Direct labor Indirect costs Supporting direct labor Batch setups Product sustaining 0 Total cost assigned to products Costs not assigned to products Other Total cost