Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Pathfinder S 91.00 S 55.00 S 10.00 S 125.00 S 64.20 S 16.00 1.6 DLHs 1.0 DLHs 71,000 units 25,000 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 $2,331,000 111,000 DLHs 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Do not round your Requi intermediate calculations.) Xtreme Pathfinder Total Product margin 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 Act Total 111,000 Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Overhead Cost S 888,000 Xtreme 40,000 310 Pathfinder 71,000 220 583,000 780,000 80,000 NA NA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative product margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3) 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round intermediate calculations. Round your Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3) Xtreme Pathfinder Total %of %of Amount Total Amount Amount Total Amount Amount Traditional Cost System Total cost assigned to products Xtreme Pathfinder Total %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 References Worksheet Learning Objective: 06-01 Understand activity-based costing and how it differs from a Learning Objective: 06-04 Assign costs to a cost object using a second-stage allocation