sum AS UUUUU ork Connect - Google Chrome mework God Problem 5-17 (Algo) Comparing Traditional and Activity-Based Product Margins [LO5-1, L05-3, LO5-4. LO5-5] Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning these two product lines appear below Selling price per unit Direct materials per unit Direce labor per unit Direct Lohosperit med annual production and sales 5 120.00 563.10 $13.50 1.5 OHS 24,000 units Pathfinder 192.00 $ 54.00 1 9.00 1.0 DHS 91.000 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 Estate total direct labor-hours $ 2,033,000 107.000 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 Activity Mentures Supporting direct labor (direct later-hours) Batch setups (sets) Product withining number of products) Other Total manufacturing overhead cost Estimated Overhead con 3 063.400 572.000 250,000 42.600 $ 2,933,000 Expected Activity Xtre Pathfinder Total 36,000 71.000 107,000 240 200 440 1 + NA Compute the product margins for the Xtreme and the Pathfinder products under the activity based costing system Prepare a quantitative comparison of the traditional and activity based cost assignments Complete this question by entering your answers in the tabs below.