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 Xtreme Pathfinder $ 140.00 Direct materials per unit $ 99.00 Direct labor per unit $ 72.00 $ 53.00 $ 24.00 Direct labor-hours per unit $ 12.00 2.0 DLHS Estimated annual production and sales 1.0 DLHS 20,000 units 80,000 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 $ 1,980,000 Estimated total direct labor-hours 120,000 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): Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 783,600 40,000 80,000 120,000 Batch setups (setups) 495,000 200 100 300 Product sustaining (number of products) 602,400 1 Other 99,000 NA NA Total manufacturing over head cost $ 1,980,000 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. 1 2 NA 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 Required: Required 2 > Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places) Xtreme Pathfinder Total Product margin $ 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 "Percentage" answers to 1 decimal place.) Xtremo Pathfinder % of Total Amount Amount % of Total Amount Total Amount Amount Traditional Cost System $ 0 $ 0 Total cost assigned to products 0 Xtreme % of Total Amount Pathfinder % of Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs Indirect costs $ $ 0 $ 0 Total cost assigned to products Costs not assigned to products $ 0 Total cost