Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Dota 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 $121.00 $ 65.30 $13.50 1.5 L 31,000 units Pathfinder $ 86.00 352.00 $ 9.00 1.0 OLI 65.000 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 Etimated total direct labor-hours $ 2.230,000 111,500 DIN 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): Motivities and Activity Measures Supporting direct labor (direct labor-hours) Batch setupe setup Product sustaining number of products Other Total manufacturing overhead coat anted spected tivity Overhead coat Xtrem Pathfinder Total $724,750 46,500 65,000 111,500 975,000 420 330 750 470,000 1 2 60.250 NA NA MA 52,230,000 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. Draw 25 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.) Pathfinder of Total Amount Xtreme Total % of Total Amount Amount Amount Amount Traditional Cost System % % % % Total cost assigned to products $ 0 $ 0 $ Xtreme Total 36 of Pathfinder % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % % Indirect costs % 5 % 9 $ 0 $ 0 $ Total cost assigned to products Costs not assigned to products 0 Total cost 5 0 Estimated Overhead Cost $ 724, 750 975,000 470.000 60,250 $ 2,230,000 Activities and activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead coat Expected Activity Xtreme Pathfinder Total 46,500 65,000 111,500 330 750 1 1 2. NA NA NA 420 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 activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin $