Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: hfinder Xtreme Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 121.00 86.00 $ 65.30 $ 13.50 52.00 9.00 1.0 DLHS 65,000 units 1.5 DLHS 31,000 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: $ 2,230,000 111,500 DLHS Estimated total manufacturing overhead Estimated total direct labor-hours 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 724,750 975,000 Expected Activity Total 111,500 Xtreme Pathfinder 65,000 330 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) 46,500 420 750 Estimated Overhead Cost Expected Activity Total Activities and Activity Measures Supporting direct labor (direct labor-hours) Xtreme Pathfinder S 9700 470,000 60,250 65,000 111,500 750 46,500 setups setups) 330 420 Product sustaining (number of products) 2 Other NA NA NA $2,230,000 Total manufacturing overhead cost 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 3 Required 1 Required 2 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.) Total Xtreme Pathfinder Product margin 0 Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 2 ompute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round our intermediate calculations to 2 decimal places.) Pathfinder Xtreme Total oduct margin 0 Amount Total Amount Amount Total Amount Amount Traditional Cost System % % % 0 0 Total cost assigned to products Pathfinder Total Xtreme % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % Indirect costs: % % % % % Total cost assigned to products $ 0 0 Costs not assigned to products