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): EstimatedOverhead CostExpected ActivityActivities and Activity direct labor (direct labor-hours)$646,600 33,00073,000106,000Batch setups (setups) 969,000 330240570Product sustaining (number of products) 780,000 112Other 42,400 NANANATotal manufacturing overhead cost$2,438,000 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.