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

$\backslash$table$[[,$Xtreme,Pathfinder,$],[$Selling price per unit,$$130\mathrm{.}00,$$$91\mathrm{.}00,],[$Direct materials per unit,$$64\mathrm{.}30,$$$50\mathrm{.}00,],[$Direct labor per unit,$$11\mathrm{.}20,$$$8\mathrm{.}00,],[$Direct labor$-$hours per unit,$1\mathrm{.}4,$DLHs$,1\mathrm{.}0$ DLHs$],[$Estimated annual production and sales,$21,000$ units,$72,000,$ 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 $$2,230,800$

Estimated total direct, labor$-$hours $101,400$ DLHs

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$)$:

$\backslash$table$[[,$Estinated,Expected Activity$],[$Activities and $($Activity Measures$),$overhead Cost,Xtreme,Pathfinder,Total$],[$Supporting direct labor $($direct labor$-$hours$),$$$699,660,29,400,72,000,101,400],[$Batch setups $($setups$),660,000,320,230,550],[$Product sustaining $($number of products$),780,000,1,1,2],[$other$,91,140,NA,$NA$,$NA$],[$Total manufacturing overhead cost,$$2,230,800,,,]]$

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 $3$

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.$)$

$\backslash$table$[[,$Xtreme,Pathfinder,Total Amount$],[,,,\%$ of$,,\%$ of$],[,$Amount,$\backslash$table$[[$Total$],[$Amount$]],$Amount,$\backslash$table$[[$Total$],[$Amount$]]],[$Traditional Cost System$],[,,,,,,],[,,,,,,],[,,,,,,],[\backslash$table$[[$Total cost assigned to products$]],$$$,0,,0,,$$