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 Pathfinder $ 121.00 $ 85.00 $ 64.90 $11.20 $ 51.00 1.4 DLHS 27,000 units $ 8.00 1.0 DLHS 70,000 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 Required: $ 2,156,000 107,800 DLHS 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 Estimated Overhead Cost $ 700,700 737,000 640,000 78,300 Expected Activity Pathfinder Total Xtreme 37,800 70,000 107,800 380) 290 670 1 1 2 NA NA NA Total manufacturing overhead cost $ 2,156,000 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. 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 calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder % of Amount Total Amount Amount % of Total Amount Total Amount Traditional Cost System Total cost assigned to products $ 0 $ 0 $ 0 Xtreme Pathfinder % of % of Total Amount Amount Total Amount Amount Total Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: $ 0 $ 0 $ 0 Total cost Required 2 $ 0 Help