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 Direct labor-hours per unit Estimated annual production and sales Xtrone $128.00 $ 63.10 $ 12.00 1.5 DLA 20,000 units Pathfinder $ 90.00 $ 50.00 $ 8.00 1.0 DHS 70,000 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 overhoad Estimated total direct labor-hours $ 2,100,000 100,000 OLIS 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) Product sustaining number of producto) Other Total manufacturing overhead cont Estimated Expected Activity Overhead Coat Xtreme Pathfindet Total $ 745,000 30,000 70,000 100,000 612,000 200 160 700,000 1 1 2 43.000 NA NA NA $2,100,000 360 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 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.) Xtreme Pathfinder Total Product margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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.) Xtreme Pathfinder Total Product margin 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.) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Traditional Cost System Amount % % % % % Total cost assigned to products Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % Indirect costs: % % % % % % Total cost assigned to products Costs not assigned to products Total cost