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 $115.00 $65.40 $ 85.00 $ 53.00 10.00 1.0 DLHS 60,000 units Direct labor per unit $ 16.00 $ Direct labor-hours per unit Estimated annual production and sales 1.6 DLHS 32,000 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 $1,779,200 111,200 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 Eatinated Expected Activity Overhead Cast Xtreme Pathfinder Total 556,000 51,200 770,000 60,000 111,200 430 340 400,000 1 1 770 2 53,200 $1,779,200 NA NA NA Supporting direct labor (direct labor-hours) Batch setups (setups) $ Product sustaining (number of products) Other Total manufacturing overhead cost 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.) Product margin Xtreme Pathfinder Total 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 activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Product margin Pathfinder Total Required 1 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 Pathfinder Total Amount % of Total Amount Amount % of Total Amount Amount Traditional Cost System % % % % % % Total cost assigned to products $ 0 $ 0 $ 0 Xtreme Pathfinder Total % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs: % % % % % % % % % Total cost assigned to products Costs not assigned to products: $ 0 $ 0 $ Total cost 0 $ 0