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Emoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning the ines 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 $140.00 $ 72.00 $ 24.00 2.0 DE 20,000 units Pathfinder $ 99.00 $ 53.00 $12.00 1.0 DLR 80,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct la concerning manufacturing overhead and direct labor-hours for the upcoming year appear below. Estimated total manufacturing verhead Estimated total direct labor-hours $1,900,000 120,000 DLR Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costings 2. The company is considering replacing its traditional costing system with an activity-based costing system that woul manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining capacity costs): Estimated Itxpected Activity Motivities and Activity Menseren Overhead coat Xtreme Pathfindex Total fupporting direct labor (direct labor-hours) $ 783.600 40,000 00.000 120,000 Batoh setup (setupa) 495.000 100 Product sustaining number of producto) 602,400 1 1 Other 99,000 Total manufacturing overhead coat $1.900.000 MA 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 Prov 1 of 2 11 Next > MacBook Air 20 & %