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 $ 121.00 $ 65.30 $13.50 1.5 DLHS 31,000 units Pathfinder $ 86.00 $ 52.00 $ 9.00 1.0 DLHS 65,000 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 $ 2,230, eee 111,500 DE 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) Batch setups (setups) 975,000 420 330 5 724,750 46,500 65.000 111,500 750 Din HE Nov 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 $ 724,750 975,000 470,000 60,250 $2,230,000 Expected Activity Xtreme Pathfinder Total 46,500 65,000 111,500 428 330 750 1 1 2 NA 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. 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 finat answers to the nearest whole dollar amount.) Xtreme Pathfinder Total Product margin 0 Required 2 > Complete this question by entering your answers in the tabs below. d 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 calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) Total Xtreme of Amount Total Amount Pathfinder % of Amount Total Amour Amount Traditional Cost System % % % % Total cost assigned to products $ 0 0 $ 0 Pathfinder Total Xtreme wo Amount Total Amount of Total Amount Amount Amount Activity Based Costing System Direct costs Total cost assigned to products U Xtreme Pathfinder Total of of Total Amount Amount Total Amount Amount Amount Activity Based Costing System Direct costs % % Indirect costs % % % % $ $ $ 0 Total cost assigned to products Costs not assigned to products: Total cost 0