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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 Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $140.00 $ 72.00 $ 24.00 2.0 DLHS 20,000 units Pathfinder $ 99.00 $ 53.00 $ 12.00 1.0 DLHS B0,000 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 Estimated total direct labor-hours $1,980,000 120,000 DLHS 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 di capacity costs Activities and Activity Measures Supporting direct labor direct labor-hours) Batch setups (setups) Product Sustaining number of products) Other Total manufacturing overhead cost Estimated Expected Activity Overhead Cost Xtrete Pathfinder Total $ 783,600 40,000 80,000 495,000 120,000 200 100 300 602,400 i 1 2 99,000 NA NA NA $1,980,000 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculati decimal places and "Percentage" answers to 1 decimal place.). Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System Direct materials Direct labor % % % elle % Total cost assigned to products $ 0 $ 0 0 Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % % Indirect costs: % % % % % % $ 0 $ 0 $ 0 Total cost assigned to products Costs not assigned to products: Total cost $ 0

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