Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Selling price per unit $ 120.00 Pathfinder $ 87.00 Direct materials per unit Direct labor per unit $ 55.00 $ 63.60 $ 12.00 $ 10.00 Direct labor-hours per unit Estimated annual production and sales 1.2 DLHS 25,000 units. 1.0 DLHS 72,000 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 Estimated total direct labor-hours $ 2,040,000 102,000 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): Activities and Activity Measures Expected Activity Xtreme Pathfinder 30,000 72,000 Total 102,000 Supporting direct labor (direct labor-hours) Estimated Overhead Cost $ 622,200 644,000 700,000 73,800 250 210 460 Batch setups (setups) 1 1 2 Product sustaining (number of products) NA NA NA Other Total manufacturing overhead cost $ 2,040,000 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. 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 $ 25,000 $ 72,000 $ 97,000 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 0 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.) Xtreme Pathfinder % of Total Amount % of Total Amount Total Amount Amount Traditional Cost System Total cost assigned to products Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost $ $ 0 Xtreme Amount % of Total Amount 0 $ Total Amount $ $ 0 0 0