Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (L07-1, LO7-3, L07-4, L07-5) 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 $ 124.00 $ 63.40 $ 14.40 1.8 DLHS 23,000 units Pathfinder $ 88.00 $ 53.00 $ 8.00 1.0 DLHS 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 Activities and Activity Measures Expected Activity Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 712,960 41,400 70,000 Batch setups (setups) 111,400 504,000 230 190 420 Product sustaining number of products) 740,000 1 48,240 NA Total manufacturing overhead cost $ 2,005, 200 Other 1 2 NA NA Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 nces 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.) Xtreme Pathfinder Product margin Total 0 Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing syst your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin $ Required 1 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 20 places and "Percentage answers to 1 decimal place.) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System % % % % Total cost assigned to products $ 0 $ 0 Xtreme Total % of Pathfinder % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: + % % % % Indirect costs: % * % % % % $ $ $ 0 Total cost assigned to products Costs not assigned to products: Total cost S 0