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 $ 124.00 $ 63.40 $ 14.40 1.8 DLHS 23,000 units Pathfinder $ 88.00 $ 53.00 $ 8.00 1.0 DLHS 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 $ 2,005,200 111,400 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): Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Estimated Overhead Cost $ 712,960 504,000 740,000 Expected Activity Xtreme Pathfinder Total 41,400 70,000 111,400 230 190 420 1 1 2 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 $ 712,960 504,000 740,000 48,240 $ 2,005, 200 Expected Activity Xtreme Pathfinder Total 41,400 70,000 111,400 230 190 420 1 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. Complete this question by entering your answers in the tabs below. 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.) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System Direct materials % 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 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 Total Amount Pathfinder % of Amount Total Amount Amount Amount % % Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products % % % % $ 0 $ 0 $ 0 Xtreme Total % of Total Amount Pathfinder % of Amount Total Amount Amount Amount Activity-Based Costing System Direct costs: Saved Amount Total Amount Amount Total Amount Amount % Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products % % % % $ 0 $ 0 $ 0 Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount % % % % 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 % % % % % $ $ $ 0 Total cost $ 0