Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below Xtreme Pathfinder Selling price per unit $ 115.00 $ 83.80 Direct materials per unit $ 65.10 $ 50.00 Direct labor per unit $10.00 $10.00 Direct labor-hours per unit 1.0 DLHS 1.6 DLHS Estimated annual production and sales 29,000 units 71,000 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 $ 1,800,000 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 die capacity costs) Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 520,000 781,608 448, 59. eee $1,see, e Expected Activity xtreme Pathfinder Total 29,000 71,00 1ee, eee 409 310 710 1 1 2 NA NA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system Direct labor per unit $10.00 $ 10.00 birect labor-hours per unit 1.0 LHS 1.0 OHS Estimated annual production and sales 29,000 units 71,000 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 1,800,000 Estimated total direct labor hours 100.000 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) Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 520,000 781,000 440,000 59,00 1,600,000 Expected Activity Xtreme Pathfinder Total 29,000 71.000 100,000 400 310 710 1 2 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 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 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 Ded 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.) Xtreme % of Total Amount Pathfinder % of Amount Total Amount Total Amount Amount Traditional Cost System Total cost assigned to products $ 0 $ 0 $ 0 Xtreme Pathfinder % of Total Amount Amount Total Amount % of Total Amount Amount Activity-Based Costing System Direct costs Indirect costs $ Total cost assigned to products Costs not assigned to products 0 S $ 0 Total cost