Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (LO7-1, L07-3, L07-4, LO7-5) Smoky Mountain Corporation makes two types of hiking bootsthe 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 $ 121.00 63.70 $ 8.80 1.1 L 26,000 units Pathfinder $91.00 $ 56.00 $ 8.00 1.0 LS 73,000 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 $ 2,133,600 101,600 DLR 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 Memes Supporting direct labor (direct labor-hours) Bateh setup (sete) Product sustaining number of products) Other Total manufacturing overhead coat Estimated Expected Activity Overhead Coat Xtreme Pathfinder Total 5 629,920 28,600 73,000 101,600 768,000 260 220 480 710,000 1 25.680 NA SEN 52.133.600 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 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 Total Product $606081 $ 605,081 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 system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin 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 Total Amount Pathfinder % of Total Amount Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products $ 0 $ 0 $ 0 Xtreme Pathfinder Total % of Amount Total Amount % of Total Amount Amount Amount Activity Based Casting System Direct costs % *** % % Indirect costs % + % % % % % % Total cost assigned to products Cont not assigned to products 0 $ 0 $ 0 Total cost 0