Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 132.99 $ 94.99 Direct materials per unit $ 64.69 $ 53.99 Direct labor per unit $ 9.69 $ 8.99 Direct labor-hours per unit 1.2 DLHs 1.9 DLHs Estimated annual production and sales 24,999 units ?9,999 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct laborhours. Data concerning manufacturing overhead and direct laborhours for the upcoming year appear below: Estimated total manufacturing overhead $ 2J479,999 Estimated total direct labor-hours 98,899 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 activitybased costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organizationsustaining costs and idle capacity costs]: Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 642,299 28,899 79,999 98,899 Batch setups (setups) 915:999 359 269 619 Product sustaining (number of products) 849,999 1 1 2 Other' 72, 80?} N NA N14 Total manufacturing overhead cost $ 2,479J999 Compute the product margins for the Xtreme and the Pathfinder products under the activitybased costing system. 3. Prepare a quantitative comparison of the traditional and activitybased cost assignments. Complete this question by entering your answers in the labs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathnder 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 35 0 Required 2 > Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathnder products under the activitybased costing system. (Round your intermediate calculations to 2 decimal places.) Product margin $ 0 ( Required1 Required3 > Xtreme Pathfinder % of % of Total Amount Total Amount Total Amount Amount Amount Traditional Cost System Total cost assigned to products S 0 $ 0 $ Xtreme Pathfinder % of % of Total Amount Total Total Amount Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products S 0 $ 0 Costs not assigned to products: Total cost $