Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Pathfinder $ 85.00 $ 51.00 $ 8.00 Xtreme Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 121.00 $ 64.90 $ 11.20 1.4 DLHs 1.0 DLHs 27,000 units 70,000 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 $2,156,000 107,800 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 Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Overhead Cost Xtreme Pathfinder Total $700,700 37,800 70,000 290 107,800 670 737,000 640,000 78,300 $2,156,000 380 NA NA NA Total manufacturing overhead cost 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 Required3 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 $ 45 $ 53 Required 1Required 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 calc decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder Total %ot %of Amount Total Amount Amount Total Amount Amount Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products 0 Xtreme Pathfinder Total %ot %of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Direct materials Direct labor Indirect costs Supporting direct labor Batch setups Product sustaining 0 Total cost assigned to products Costs not assigned to products Total cost 0