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 Direet materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtrene $115.00 $ 63.90 $12.00 1.2 D. 28,000 units Pathfinder 5. 85.00 51.00 5 10.00 2.0 DLHS 75,000 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: ces Estimated total manufacturing overhead Estimated total direct labor-hours $2,063,400 108,600 DLS 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 Sapporting direct labor direct labor-hours) S673,320 33,600 75,000 108.600 Batch setups (etup) 520,000 280 240 520 Product sustaining number of products) 790,000 1 1 Other 80.000 NA MA HA Total manufacturing overhead cost $ 2,063,400 2 Compute the product margins for the Xtreme and the Pathfinder products under the activity based costing system 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 $ 2,063,400 108,600 DLRS 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) ich netups (setups) Product sustaining number of products) Other Total manufacturing over head coat Estimated Expected Activity Overhead coat Xtreme Pathfinder Total $ 673,320 33,600 75,000 100,600 520,000 200 240 520 790,000 1 1 2 10,080 NA MA NA $2,063,400 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. 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.) Pathfinder Product margin squired Required 2 > Xtreme Total 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.) Xtreme Pathfinder Total Product margin Pieces all Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System % % % % % Total cost assigned to products Xtreme Pathfinder Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % Indirect costs: % % Total cost assigned to products Costs not assigned to products: Total cost