Smokey Mountain Corporation makes two types of hiking boots- the Xtreme and the Pathfinder. Data concerning these two product lines appear below:

5 Check my work Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: pints Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $140.00 $ 72.00 $ 24.00 2.2 DLHS 20,000 units Pathfinder $ 99.00 $ 53.00 $ 12.00 1.0 DLHS 80,000 units eBook Hint 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: Print eferences Estimated total manufacturing overhead Estimated total direct labor-hours $ 1,980,000 120,000 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 costs): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Drndir erlenininn nunhar nfnndurtel Estimated Overhead Cost $ 783,600 495,000 602 400 Expected Activity Xtreme Pathfinder Total 40,000 80,000 120,000 200 100 300 1 1 2 Complete this question by entering your answers in the tabs below. OK 1 Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin Check my work 5 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to decimal places and "Percentage" answers to 1 decimal place.) Xtreme Total Pathfinder % of Amount Total Amount ook % of Total Amount Amount Amount int Traditional Cost System nt % % nces % % % % Total cost assigned to products Xtreme Total % of Pathfinder % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % % Indirect costs % los Rae BE