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Question: smoky mountain corporation makes two types of hiking bootsthe xtreme...

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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: Pathfinder $ 91.00 $ 52.00 $ 10.00 Xtreme Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 141.00 $ 64.50 $ 17.00 1.7 DLHs 1.0 DLHs 23,000 units 74,000 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 $ 2,714,400 113,100 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the companys 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) Estimated Expected Activity Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) Other Overhead Cost Xtreme Pathfinder Total $ 791,700 1,062,000 790,000 70.700 39,100 74,000 250 113,100 590 340 NA NA NA Total manufacturing overhead cost $ 2,714,400Compute 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 1Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the companys traditional costing system (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Xtreme Pathfinder Total Product margin Required 1 Required 23. Prepare a quantitative comparison of the traditional and activity-based cost assignments Complete this question by entering your answers in the tabs below. Required 1Required 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 3>Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermedi decimal places.) Xtreme Pathfinder Total %of %of Amount Total Amount Amount Total Amount Amount Traditional Cost System Total cost assigned to products 0 Xtreme Pathfinder Total %of %of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost

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