Smoky Mountain Corporation makes two types of hiking bootsthe 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 5120.00 $63.30 $17.ee 1.7 LHS 22, e80 units Pathfinder $ 87.ee $ 52.00 $ 10.00 1.8 DLHS 76,020 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 $1,927,800 113,408 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 Xtrene Pathfinder Total Supporting direct labor (direct labor-hours) 5703, 37,400 76,000 113,400 480,000 220 180 400 Product sustaining inunber of products) 700,000 2 Other 44,720 NA NA NA Total manufacturing overhead cost 51.927.500 1 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