Prepare a quantitative comparison of the traditional and activity-based cost assignments.

All numbers currently in the table are correct.

Smoky Mountain Corporation makes two types of hiking boots-the Xtreme 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 $ 125.00 $ 64.20 $ 16.00 1.6 DLHS 25,000 units Pathfinder $ 91.00 $ 55.00 $ 10.00 1.0 DLHS 71,000 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 $ 2,331,000 111,000 DLHS Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Expected Activity Overhead Cost Xtreme Pathfinder Total $ 888,000 40,000 71,000 111,000 583,000 310 220 530 780,000 80,000 NA NA $ 2,331,000 % of Total Amount % of Total Amount Amount Amount Amount $ $ $ Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products 1,605,000 400,000 840,000 2,845,000 29.11% 36.0% 36.0 % 3,905,000 710,000 1,491,000 6,106,000 70.91% 64.0 % 64.0% 5,510,000 1,110,000 2,331,000 8,951,000 $ $ $ Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Activity-Based Costing System Direct costs: Direct labor Direct materials 0 % % 0 % % Indirect costs: $ 0 $ 0 $ 0 Total cost assigned to products Costs not assigned to products: Other Total cost 80,000 80,000