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 Direct materiale per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 130.00 $ 64.30 $ 11.20 1.4 DLA 21,000 units Pathfinder $ 91.00 $ 50.00 $ 8.00 1.0 DLRS 72,000 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: Estinated total manufacturing over head Estimated total direct labor-hours $ 2,230,800 101,400 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 copacity costs): Activities and activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product wastaining number of producte) Other Total manufacturing overhead cont Estimated Expected Activity Overhead Cost Xtreme Pathfinder total $ 699,660 29.400 72,000 101,400 660,000 320 230 550 780,000 1 1 2 21,140 NA NA $2,230,000 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 assianments