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Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Dato concerning these two product lines appear below. Xtre Pathfinder Selling price ber unit $ 12000 $90.00 Direct materials per unit $ 6410 $53.00 Direct labor per unit $ 13.150 $ 9.00 Direct labor-hours per unit 115 DR 2.0 DHE Estimated production and sales 30,000 TO,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Dato concerning manufacturing overhead and direct lobor-hours for the upcoming year appear below Estimated total manufacturing overhead 32,300,000 Estimated total direct labor-hours 115,000 DA Required: 1. Compute the product margins for the Xtreme and the Pothfinder 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 and Activity Measures Supporting direct labor (direct labor hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cont Estimated Overhead Cost $ 977.500 619.000 V00,000 10, 500 $ 2,300,000 Expected Activity Xtreme Pathfinder Total 45,000 70,000 115,000 300 210 610 1 1 2 NA NA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 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 company's traditional costing system, (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Xtreme Pathfinder Total S 0 Product margin Requnea 1 Required 2 > Activities and Activity Measures Supporting direct labor direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost $ 977.500 612,000 700,000 10,500 $ 2,300,000 Expected Activity Xtreme Pathfinder Total 45,000 70,000 115,000 300 210 510 1 1 2 NA NA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 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. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin 0 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place.) Xtreme Pathfinder % of Amount Total Amount % of Total Amount Total Amount Amount Traditional Cost System Total cost assigned to products $ 0 $ 0 $ Xtreme Pathfinder Total Amount % of Total Amount W of Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs Xtreme Pathfinder Total Amount % of Total Amount Amount % of 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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