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 $ 140.00 $ 99.00 Direct materials per unit $ 72.00 $ 53.00 Direct labor per unit $ 24.00 $ 12.00 Direct labor-hours per unit 2.0 DLHS 1.0 DLHS Estimated annual production and sales 20,000 units B0,000 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 $ 1,980,000 Estimated total direct labor-hours 120,000 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) $ 783,600 40,000 80,000 120,000 Batch setups (setups) 495,000 Product sustaining (number of products) 602,400 1 Other 99,000 Total manufacturing overhead cost $ 1,980,000 100 200 1 NA 300 2 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. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme (12.400) Pathfinder 1,923,800 Total 1,911,400 Product margin $ $ $ Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder Total Amount % of Total Amount % of Total Amount Amount Amount Traditional Cost System Total cost assigned to products $ 0 $ 0 0 Xtreme Pathfinder Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs: Direct materials Direct labor Indirect costs: $ 0 $ 0 $ 0 Total cost assigned to products Costs not assigned to products: Total cost $ 0 Ruadh