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 Xtreme $120.00 $ 64.80 $ 13.00 -1.3 DLHS 26,000 units Pathfinder $ 80.00 $ 50.00 $10.00 1.0 DLHS 72,000 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 $1,904, 400 105, 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) Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing over head cost Estimated Expected Activity Overhead cost Xtreme Pathfinder Total $ 581, 900 33, 800 72.000 105,800 650,000 370 280 650 000,000 1 1 2 72,500 NA NA NA 51,904, 400 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 Estimated total direct labor-hours 105,800 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): Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) 581,900 72,000 105,800 Batch setups (setups) 650,000 Product sustaining (number of products) 600,000 Other 72,500 Total manufacturing over head cost $1,904, 400 $ 33, 800 370 1 NA 280 1 NA 650 2 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 2 > Estimated total direct labor-hours 105,800 OLHS 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 (number of products) Other Total manufacturing over head cost Estimated Expected Activity Overhead Cost Xtreme Pathfinder Total $ 581.900 33,800 72,000 105,800 650,000 370 280 650 600,000 1 1 2 72,500 NA NA NA 51,904,400 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 activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total $ Product margin 0 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate places and "Percentage" answers to 1 decimal place.) Xtreme % of Amount Total Amount Total Pathfinder % of Amount Total Amount Traditional Cost System Amount % % ele Total cost assigned to products % $ % 0 $ $ 0 Pathfinder Xtreme % of Amount Total Amount Total Amount % of Total Amount Activity-Based Costing System Direct costs Amount + % Indirect costs: % % % % % % % Total cost assigned to products Costs not assigned to products: $ 0 $ 0 $ 0 Total cost $ 0