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 Estimated annual production and sales Xtreme $ 121.00 $ 64.70 $ 10.80 1.2 DLHS 25,000 units Pathfinder $ 88.00 $ 54.00 $9.00 1.0 DLHS 71,000 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 $ 2,020,000 101,000 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 Activities and Activity Measures Expected Activity Overhead Cost Xtreme Pathfinder Total Supporting direct labor (direct labor-hours) $ 606,000 30,000 71,000 101,000 Batch setups (setups) 693,000 360 270 630 Product sustaining number of products) 700,000 2 1 Other 21,000 NA NA Total manufacturing overhead cost 52,020,000 2 NA system Compute the product margins for the Xtreme and the Pathfinder products under the activity-based cos 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 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) $ 606,000 30,000 71.000 101,000 Batch setups (setups) 693,000 360 270 630 Product sustaining (number of products) 700,000 1 1 Other 21,000 NA NA NA Total manufacturing overhead cost $2,020,000 2 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtromo Pathfinder Total Product margin Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) Xtreme Total % of Pathfinder % of Amount Total Amount Amount Total Amount Amount % Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products 270.000 % %$ 3,834,000 % 639.000 % $ 4.473,000 % $ 270,000 $ 0 Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount % $ 3,025,000 270,000 %[ $ 3,834,000 % 639,000 % Activity-Based Costing System Direct costs Direct materials Direct labor Indirect costs: Supporting direct labor Batch setups Product sustaining Total cost assigned to products Costs not assigned to products: Other Total cost % RI % RR % % % $3.295,000 $ 4,473,000 S 0 $ 0