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 $ 120.ee $ 64.10 $ 13 se 1.5 DLHS 38,000 units Pathfinder $90.00 $53.00 5 9.00 1. e DHS 70,00 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 $2,300,000 115,800 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 poot includes organization-sustaining costs and ide capacity costs): Estimated Overhead Cort $ 977,500 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups). Product sustaining number of products) Other Total manufacturing overhead cost Expected Activity Free Pathfinder Total 45,000 70,000 119,000 360 510 1 NA 780,000 10.500 $ 2,300,000 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