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 materials per unit Direct labor per unit Direct labor-hours per unit stimated annual production and sales Xtreme $ 130.00 64.30 11.20 Pathfinder 91.00 50.00 8.00 1.0 DLHS 72,000 units DLHS 21,000 unit Ences 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 thead $ 2,230,800 101,400 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): RA Activities and Activity Measures Supporting direct labor (direct labor Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 699,660 660,000 780,000 91,140 $ 2, 230,800 Expected Activity Xtreme Pathfinder Total 29,480 72,000 101,489 320 230 550 2 NA NA eBook Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. Print 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. ferences