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 $ 115.00 $65.10 $ 12.ee 1.2 DLMS 29,600 units Pathfinder $ 33.00 $ 50.00 $10.00 1. e 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 $ 1,800,000 100,000 US Required: 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) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 520,000 781,000 440,000 59,000 $ 1.500,00 Expected Activity Xtreme Pathfinder Total 29, ee 21,000 100,000 400 310 710 1 2 NA 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 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.) Xtreme Pathfinder Total Product margin $ Required 2 > 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 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.) Total Xtreme 5 of Amount Total Amount Pathfinder % of Amount Total Antount Amount Traditional Cost System 9 % Total cost signed to products $ 0 S 0 S 0 Xtreme Total % of Total Amount Pathfinder % of Amount Total Amount Amount Amount Activity Based Costing System Direct costs Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Activity-Based Costing System Direct costs % 2 Indirect costs % 90 % % S 0 $ 0 s 0 Total cost assigned to products Costs not assigned to products Total cost $ Roomid