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Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below Xtreme Pathfinder $120.00 87.00 Selling

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Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below Xtreme Pathfinder $120.00 87.00 Selling price per unit 65.20 51.00 Direct materials per unit 11.20 8.00 Direct labor per unit 1.4 DLHs 1.0 DLHs Direct labor-hours per unit 30,000 units 65,000 units Estimated annual production and sales 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: $2,033,000 Estimated total manufacturing overhead 107,000 DLHs 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. (Do not round your intermediate calculations.) Total xtreme Pathfinder 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)

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