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Smoky Mountain Corporation makes two types of hiking boots the Xtreme and the Pathfinder Data concerning these two product lines appear below Selling price per

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Smoky Mountain Corporation makes two types of hiking boots the Xtreme and the Pathfinder Data concerning these two product lines appear below Selling price per unit Direct materials per unit Direct labor per unit Orect labor hours per unit Estimated annual production and sales Xtrent S 120.00 563.30 $ 17.00 1.2 DH 22.00 units Pathfinder $22.00 $ 3.00 $10.00 La DH 78.000 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 5 1.920 113.400 DLHS Required: 1 Comoute 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 manusctuning overhead to the following four activity cost pools the other cost Boondudes organizator sustaining costs and idle Caty costs capacity costs) Activities and Activity Measures Supporting direct labor direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 703,000 480,000 700,000 44,220 51,927.800 Expected Activity Xtreme Pathfinder Total 37,480 70,000 113,400 22 130 400 1 1 2 NA TA 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 Prepare a quantitative comparison of the traditional and activity based cost assignments Round your intermediate calculations to 2 decimal places and contage answers to decimal place) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount s Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products $ 1,392,600 374,000 635,800 $ 2,402 400 26.1% 33 0% 330% 3.952.000 760.000 1.292.000 6,004,000 73.9 % $ 5,344,600 67.0% 1,134,000 67.01% 1.927,800 $ 8.406,400 $ Xtreme Pathfinder Total % of % of Total Amount Amount Total Amount Amount Amount Activity-Based Costing System Direct costs % % 96 % Indirect costs % % % 9 % 96 $ $ S 0 Total cost assigned to products Xtreme Pathfinder Total % of % of Amount Total Amount Amount Amount Total Amount Activity-Based Costing System Direct costs 96 4 % Indirect costs 96 % % % % 0 $ 0 $ $ Total cost assigned to products Costs not assigned to products 5 0 Total cost

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