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 Activity
Activities and Activity Measures	Overhead Cost		Xtreme	Pathfinder	Total
Supporting direct labor (direct labor-hours)	$	588,500	42,000	65,000	107,000
Batch setups (setups)		690,000	390	300	690
Product sustaining (number of products)		500,000	1	1	2
Other		40,500	NA	NA	NA
Total manufacturing overhead cost	$	1,819,000

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places.)

Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme 118.00 S 85.00 S 13.50 Pathfinder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales S 84.00 52.00 $ 9.00 1.5 DLHs 28,000 units 1.0 DLHs 65,000 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 andct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $1,819,000 107,000 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the companys traditional costing system Product marginS 392,000 S 390,000 S 782,000