Smoky Mountain Corporation makes two types of hiking boots$-$the Xtreme and the Pathfinder. Data concerning these two product

lines appear below:

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: 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.$)$

Estimated total manufacturing overhead

Estimated total direct labor$-$hours

$$2,033,000$

Required:

Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system.

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$)$:

Compute the product margins for the Xtreme and the Pathfinder products under the activity$-$based costing system.

Prepare a quantitative comparison of the traditional and activity$-$based cost assignments. 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.$)$ 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.$)$