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 $ 140.00 $ 72.00 $99.00 $ 53.00 $ 24.00 $ 12.00 2.0 DLHS 20,000 units 1.0 DLHS 80,000 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: $ 1,980,000 120,000 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 Total manufacturing overhead cost $ 783,600 Estimated Overhead Cost Expected Activity Xtreme 40,000 Pathfinder Total 80,000 200 100 1 1 120,000 300 2 99,000 $1,980,000 NA 495,000 602,400 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 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.) Amount Traditional Cost System Pathfinder % of Total Amount Xtreme % of Total Amount Amount Total Amount Total cost assigned to products $ 0 $ 0 Xtreme Pathfinder % of % of Total Amount Amount Activity-Based Costing System Total Amount Amount Total Amount Direct costs: Indirect costs: 0 Total cost assigned to products Costs not assigned to products: $ 0 $ 0 $ 0 Total cost $ 0 < Required 2 Required 3 >