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Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathnder. Data concerning these two product lines appear below: Xtrene Pathfinder Selling price per unit 5 120.00 $ 92.00 Direct materials per unit 5 63.50 $ 54.00 Direct lab-or per unit 5 13.50 $ 9.00 Direct labor-hours per unit 1.5 DLHs 1.0 ms: Estimated annual production and sales 24,000 units ?l,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 .5 2 , 0'33 , 000 Estimated total direct labor-hours 10? I000 DLHs I Required: 1. Compute the product margins for the Xtreme and the Pathnder 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 Overhead Coat xtreme Pathfinder Total Supporting direct labor (direct labor-hours) 5 663,400 36,000 T1,000 107,000 Batch setups {setups} 511,000 240 200 440 Product sustaining (number of products) 750,000 1 l 2 other 4?,6M Ira Ha Ha Total manufacturing overhead cost 5 31033100\" [