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

Xtreme Pathfinder

Selling price per unit $ $120\mathrm{.}00$ $ $87\mathrm{.}00$

Direct materials per unit $ $63\mathrm{.}30$ $ $52\mathrm{.}00$

Direct labor per unit $ $17\mathrm{.}00$ $ $10\mathrm{.}00$

Direct labor$-$hours per unit $1\mathrm{.}7$ DLHs $1\mathrm{.}0$ DLH

Estimated annual production and sales $22,000$ units $76,000$ units

The company has a traditional costing system that applies manufacturing overhead 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 $ $1,927,800$

Estimated total direct labor$-$hours $113,400$ DLHs

Required:

Compute the product margins for Xtreme and Pathfinder 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$)$: