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		$ 91.00
Direct materials per unit	$ 63.70		$ 56.00
Direct labor per unit	$ 8.80		$ 8.00
Direct labor-hours per unit	1.1	DLHs	1.0	DLHs
Estimated annual production and sales	26,000	units	73,000	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	$ 2,133,600
Estimated total direct labor-hours	101,600	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):

Activities and (Activity Measures)	Estimated Overhead Cost	Expected Activity
		Xtreme	Pathfinder	Total
Supporting direct labor (direct labor-hours)	$ 629,920	28,600	73,000	101,600
Batch setups (setups)	768,000	260	220	480
Product sustaining (number of products)	710,000	1	1	2
Other	25,680	NA	NA	NA
Total manufacturing overhead cost	$ 2,133,600

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.

Answer is not complete. Complete this question by entering your answers in the tabs below. 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.) Complete this question by entering your answers in the tabs below. 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.) Complete this question by entering your answers in the tabs below. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calcul Harimal nlarae ant "Darrantana" aneware th 1 Harimal nlara )