Problem 7-17 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: Xtreme Pathfinder Selling price per unit 90.ee Direct saterials per unit 53.00 Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 30, eee units 70,000 units $ 120.be $ 13.se 1.5 DLHS 9.00 1. DLHS 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 S2.. 115,000 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 COST) capacity costs): Estimated Overhead Cost $ 977,500 612, eee 780,000 1e, see $ 2,300, eee Expected Activity Xtreme Pathfinder Total 4 5, eee 70,eee 115, eee 510 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost 3ee 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 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 margin Required 2 > Complete this question by entering your answers in the tabs below.pl Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total so Product margin Prepare a quantitative comparison of the traditional and activity based cost assignments. (Round your interme decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfindes Amount Total Amount Amount Total Amount Amount Traditional Cost System Total cost assigned to products Xtreme Pathfinder Total % of Amount Total Amount Amount Total Amount Amount Actvity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cos