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 labon-hours per unit Estimated annual production and sales Xtreme $ 141.00 $ 64.50 $ 17.00 1.7 LH 23,000 units Pathfinder $91.00 $52.00 $10.00 1. LHS 74,000 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 $ 2,714,100 113, 100 DUES 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) Batch setups (setups) Product sustaining (runber of products) Other Total manufacturing overhead cost Estimated Overhead cost $ 791,700 1,062,000 790,000 70,700 $ 2,714,400 Expected Activity Xtreme Pathfinder Total 39, 100 74,000 113,160 340 250 590 1 1 2 NA NA NA 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 $ 791,700 1,062,000 790,000 70,709 $ 2,714,400 Expected Activity Xtreme Pathfinder Total 39, 100 74,000 113,100 140 250 590 1 1 2 NA NA NA 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 $ 0 Product margin Required Required 2 >