Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: finder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 120.00 64.80 13.00 $ 80.00 50.00 $ 10.00 1.3 DLHs 26,000 units 1.0 DLHs 72,000 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 $1,904,400 105, 800 DLRe 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 Overhead Cost Xtreme Pathfinder Total Expected Activity vities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product austaining (number of products) Other 581,900 33, 800 72,000105,800 650 650,000 600,000 72-500 1,904,400 280 NA NA NA Total manufacturing overhead cost Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system