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 Xtreme Pathfinder $ 130.00 $ 91.00 Direct materials per unit $ 64.30 $ 50.00 Direct labor per unit $ 11.20 $ 8.00 Direct labor-hours per unit Estimated annual production and sales 1.4 DLS 21,000 units 1.0 DLBS) 72,000 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 $ 2,230,800 Estimated total direct labor-hours 101,400 DLH 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 Expected Activity Overhead Cost Xtreme Pathfinder $ Estinated Total 320 699,660 29,400 72,000 101,400. 660,000 780,000 1 230 1 550 2 91,140 NA NA NA $ 2,230,800 Total manufacturing overhead cost Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.