Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5) Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 132.80 $64.50 $ 9.60 1.2 DLHS 24,000 units Pathfinder $94.ee $ 53.88 $ 8.80 1.2 DLHS 79,90 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 $ 2,479, 280 98,880 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): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups ) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ $ 642,200 915,000 840, ese 72,800 $ 2,470,899 Expected Activity Xtreme Pathfinder Total 28,888 ze, 880 98,888 350 260 610 1 1 2 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System 96 96 96 96 96 96 Total cost assigned to products $ $ 0 S 0 Xtreme Total Pathfinder % of % of Total Amount Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % 96 96 Indirect costs: 96 96 9 96 % *** 96 96 S 0 S 0 S 0 Total cost assigned to products Costs not assigned to products: N Total cost S 0