Chapter 07 Problems i Saved Help Save & Exit Submit Check my work 4 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 $ 55.00 $ 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 125.00 $64.20 $16.00 5 points 1.6 DLHs 1.0 DLHs 25,000 units 71,000 units eBook 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: Print Estimated total manufacturing overhead Estimated total direct labor-hours 2,331,000 111,000 DLHs References 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 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 $ 888,000 4, 000 71,000 111, 000 530 583,000 780,000 80,000 220 NA NA NA Total manufacturing overhead cost 2,331,000 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system