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

	Xtreme			Pathfinder
Selling price per unit	$	121.00		$	86.00
Direct materials per unit	$	65.30		$	52.00
Direct labor per unit	$	13.50		$	9.00
Direct labor-hours per unit		1.5	DLHs		1.0	DLHs
Estimated annual production and sales		31,000	units		65,000	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	$	2,230,000
Estimated total direct labor-hours		111,500	DLHs

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the companys 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 Overhead Cost			Expected Activity
Activities and Activity Measures				Xtreme	Pathfinder	Total
Supporting direct labor (direct labor-hours)	$	724,750		46,500	65,000	111,500
Batch setups (setups)		975,000		420	330	750
Product sustaining (number of products)		470,000		1	1	2
Other		60,250		NA	NA	NA
Total manufacturing overhead cost	$	2,230,000

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.

Numbers in the last image are correct, just missing the rest of the information.

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 $ 378,200 $ 325,000 $ 703,200 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 $ 224,950 Pathfinder $ 538,500 Total 763,450 Product margin $ Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places.) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System Total cost assigned to products Xtreme Pathfinder Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Direct materials $ 2,024,300 % $ $ 3,380,000 585,000 % % 5,404,300 1,003,500 Direct labor 418,500 302,250 422,500 724,750 Indirect costs: Supporting direct labor Batch setups Product sustaining Total cost assigned to products 546,000 235,000 429,000 235,000 975,000 470,000 $ 3,526,050 $ 5,051,500 $ 8,577,550 Costs not assigned to products: 60,250 8,637,800 Total cost | $