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

Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Pathfinder $ 94.00 $ 53.00 $ 8.00 Xtreme Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $132.00 64.60 $ 9.60 1.2 DLHS 1.0 DLHS 24,000 units 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 overhead Estimated total direct labor- hours $2,470,000 98,800 DLHS 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) Expected Activity Estimated Overhead Cost Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Xtreme Pathfinder Total $ 642,200 28,800 70,000 98,800 610 915,000 840,000 72,800 $2,470,000 350 260 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 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required Required Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round 2 3 your intermediate calculations to 2 decimal places.) Show less treme Pathfinder otal %of Total Amount %of Total Amount Amount Amount Amount Traditional Cost System Total cost assigned to roducts Xtreme Pathfinder Total %of Total Amount %of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to 0 roducts Costs not assigned to roducts Total cost Required 2 Required 3