Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below:

pestaria C Fact Pattern 2-1 Yos.. DeepL Translator apter 7 Saved Selling price per unit Xtreme Pathfinder Direct materials per unit $ 132.00 Direct labor per unit $ 64.60 $ 94.00 $ 53.00 Direct labor-hours per unit 9 .60 8.00 Estimated annual production and sales 1.2 DLHs 1.0 DLHs 24, 000 units 70, 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, 470, 000 Estimated total direct labor-hours 98, 800 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): Estimated Expected Activity Activities and Activity Measures Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) 642, 200 28, 800 70,090 98, 800 Batch setups (setups) 915, 000 350 260 610 Product sustaining (number of products) 840, 060 2 Other 72, 800 NA NA NA Total manufacturing overhead cost $ 2, 470, 030 6 Next >