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Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathnder. Data conceming these two product lines appear below: Xtreme Pathnder Selling price per

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Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathnder. Data conceming these two product lines appear below: Xtreme Pathnder Selling price per unit $115.00 $ 34.00 Direct materials per unit $ 65.50 $ 54.00 Direct labor per unit $ 13.60 $ 3.00 Direct labor-hours per unit 1.7 DLHs 1.0 DLHs Estimated annual production and sales 33,000 units 61,000 units The company has a traditional coating 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 $1,756,500 overhead Estimated total direct labor-hours \"7'10\" DLHS Required: 1. Compute the product margins for the Xtreme and the Pathnder products under the company's traditional costing system. (Do not round your intermediate calculations.) 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 Expected a I' '| Activities and Activity Overhead Measures Cost theme Pathnder Total Supporting direct labor (direct 56,100 labor-hours} $ 526,950 61,000 117,100 Batch setups (setups) 790,000 440 350 790 Product sustaining (number of products) 400,000 1 1 2 Other 39,550 NA NA NA Total manufacturing overhead 1,756,500 cost $ Compute the pmduct margins for the Xtreme and the Pathnder 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.) PM\" _- ma uin . 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. (Le. .1234 should be entered as 12.3)] ____ ___-_- umducts S stem ____ __ ___ _ _ ___ _ ____ __ ___ _ _ ___ _ _ ___ _ _m-m-m I mducts ___-_- - mducts: ____- ____m

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