Smoky Mountain Corporation makes two types of hiking boots-Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 115.00 $ 63.90 $ 12.00 1.2 DLHS Pathfinder $ 85.00 $ 51.00 $ 10.00 1.0 DLHS 28,000 units 75,000 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: $2,063,400 Estimated total manufacturing overhead Estimated total direct labor-hours 108,600 DLHs 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.) Xtreme Pathfinder Total Product margin S 0 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 Activity Overhead Cost Xtreme Pathfinder Total Activities and Activity Measures Supporting direct labor (direct labor- hours) Batch setups (setups) Product sustaining (number of products) Other $ 673,320 33,600 75,000 108,600 520,000 280240 520 790,000 80,080 1 NA 1 NA 2 NA 2,063,400 Total manufacturing overhead cost 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. (.e. .1234 should be entered as 12.3)) Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System Total cost assigned to products Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs: $ Total cost assigned to products Costs not assigned to products: Total cost