Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and tines appear below Selling price per unit Direct materials per unit Direct labor per unit Direct labor hours per unit Estimated annual production and sales Xtreme $ 128.00 $63.10 $ 12.00 1.5 DLHS 20,eee units Pathfinder $ 90.00 $50.00 $ 8.ee 1.0 DLHS 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 Estimated total direct labor-hours $ 2, 100, tee 100, Be 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 airect labor-hours) $ 745,000 30,000 70,000 100,000 Batch setups (setups) 612,600 200 160 360 Product sustaining number of products) 200, 1 1 Other 43,00 NA NA NA Total manufacturing overhead cost $ 2,100,00 2 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, 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing sys 2. The company is considering replacing its traditional costing system with an activity-based costing system that would a manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining cc capacity costs): 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 $ 745,000 612,000 700,000 43,000 $ 2,109, eee Expected Activity Xtreme Pathfinder Total 30, de 70,000 100,000 200 160 360 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. 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 K Requid Required 2 > 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 id capacity costs) 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 $ 745,000 612,000 700, eee 43,00 $ 2,100, eee Expected Activity Xtreme Pathfinder Total 30, doo 7e, cee 188,888 200 168 35e 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. 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.) Pathfinder Product margin Xtreme Total Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity based cost assignments. (Round your intermediate calculations to 2 decimal places and forcentage answers to 1 decimal place.) Pat To Tutti Amount Amount Total Annount Traditional Cost System 96 96 % % Total cost assigned to products Total Xtreme of Pathfinder sof Amount Total Amount Amount Total Amount Amount Activity Based Costing System Direct costs ** Indirect costs 96 96 96 % Total cost assigned to products Costs not assigned to products Total cost