Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning these two product lines appear below: MIR E xtreme P athfinder Selling price per unit $ 88.ee Direct materials per unit $ 64.70 Direct labor per unit $ 10. 80 S 9.00 Direct labor-hours per unit 1.2 DLHS 1 .0 DHS Estimated annual production and sales 25,00 units 71,000 units $ 121.00 54.00 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 $ 2,020,000 101,000 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 Overhead Cost $ 606,000 693,000 700.000 21.000 $ 2,020,000 Expected Activity Xtreme Pathfinder Total 30,000 71,000 101,000 360 630 270 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost 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 LU LULUI Urect labor-hours 101,900 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) Other Total manufacturing overhead cost Estimated Overhead Cost $ 606,000 693,000 700,000 21,000 $ 2,020,000 Expected Activity Xtreme Pathfinder Total 30, 71.000 101,eee 630 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 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 Required 2 > $ 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 606,000 693,000 700,000 21,000 2,020,000 Expected Activity Xtreme Pathfinder Tota 30,000 71,000 101, 360 270 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costir 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 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing sy your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin Required 1 Required 3 > Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your interme decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder Total % of Total Amount Amount Amount Total Amount Amount Traditional Cost System 18+ Total cost assigned to products Xtreme Pathfinder Total Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs: SAT % % Total cost assigned to products Costs not assigned to products: Total cost