Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning these two product lines appear below: BOON Herences Xtreme Pathfinder Selling price per unit $ 126.00 5 91.00 Direct materials per unit $63.20 $ 51.00 Direct labor per unit $11.70 $ 9.00 Direct labor-hours per unit 1.3 LES 1.0 DIN Estimated annual production and sales 21.000 units 75,000 unita 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 $ 2,250,600 Istimated total direct labor-hours 102,300 DE 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 xtremePathfinder Total Supporting direct labor direct labor-bours) 5.767,250 27.300 75.000 102,300 Batch wetups teetups) 722.000 210 170 380 Product sustaining number of producto 670,000 Other 91350 NA Total manufacturing overhead cont $ 2,250.600 2 1 NA 1 NA Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 767,250 722,000 670,000 91,350 $ 2,250,600 Expected Activity Xtreme Pathfinder Total 27,300 75,000 102,300 210 170 380 1 1 2 NA NA NA 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. ces 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.) Xtreme Pathfinder Total Product margin Required Required 2 > Prev 1 of 4 !!! Next >