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Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pothfinder. Data concerning these two product lines appear below: Selling price per unit

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Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pothfinder. 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 5.141.00 54.50 17.00 1.7 LHS 23,000 units Pathfinder $91.00 $ 52.00 $10.00 1.0 Ls 74,000 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 manutacturing overhead Estimated total direct labor-hour $ 2,714,400 113,100 bit 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) Batoh setup (setupa) Product sustaining number of products) Other Total manufacturing overhead cost Estimated Expected Activity Overhead ContXtreme Pathfinder Total $ 791,700 39,100 74.000 11), 100 1,062,000 250 590 790,000 1 1 2 70/700 NA NA NA $ 2,784,400 Compute the product margins for the Xtreme and the Pathfinder products under the activity based costing system 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 1 Required 2 > 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 places and Percentager answers to 1 gecimal place Xtremno Total % of Pathfinder % of Amount Total Amount Amount Total Amount Amount Traditional Cost System % % % Total cost assigned to products Xtreme Total Pathfinder % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % Indirect costs % % Total cost assigned to products Costs not assigned to products: Total cost

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