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 Xtreme $115.00 $ 65.40 Pathfinder $ 85.00 $ 53.00 $ 10.00 Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 16.00 1.6 DLRS 32,000 units 1.0 DLHS 60,000 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: $ 1,779,200 111,200 DLH 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 manufacturinn overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity cos Activities (Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost Expected Activity Xtreme Pathfinder Total 51,200 60,000 111,200 430 340 770 1 1 2 NA NA NA $ 556,000 770,000 400,000 53,200 $ 1,779,200 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 anfount.) Product margin Xtreme Pathfinder Total $ 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.) Product margin Xtreme Pathfinder Total $ Traditional Cost System Xtreme % of Pathfinder % of Total Amount Amount Total Amount Amount Total Amount Direct materials Direct labor Manufacturing overhead Total cost assigned to products $ 0 $ $ 0 Xtreme Pathfinder. % of % of Total Amount Total Total Amount Amount Amount Amount Activity-Based Costing System Direct costs: Direct materials Direct labor Indirect costs: Supporting direct labor Batch setups Product sustaining Total cost assigned to products $ 0 $ 0 $ 0 Costs not assigned to products: Other Total cost $ 0