1 10 so Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts--the 8300 and the T500. An absorption costing income statement for the most recent period is shown Tek Manufacturing Incorporated Income statement Sales 16400 Cost of goods sold 12511 Cross margin 146,046 felling and administrative expenses $40,000 Het operating Hi-Tek produced and sold 60.300 units of 8300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below 3300 T500 Total Direct materials 5.400,00 $ 162,400 1563,200 Direct labor 120.600 16), con Manufacturing overhead 524.554 Cost of goods sold 31.251.354 Him The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59.000 and $106,000 of the company's advertising expenses could be directly traced to B300 and T500. respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below: Activity Cont Pool (and Activity Measure) Manufacturing Activity T500 Total Machining machine-houra) $ 209,884 91,000 62,200 153,200 Setups (setup hours) 154,370 280 Produet-sustaining (number of products) other organization-nuntaining costs) 60.100 NA NA Total manufacturing overhead cost 5 524,554 Overhead 1300 79 1 100, 200 1 359 2 NA ces Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system 2. Compute the product margins for B300 and T500 under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity based cost assignments. Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system 2. Compute the product margins for B300 and T500 under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. ped Complete this question by entering your answers in the tabs below. book Print Required 1 Required 2 Required 3 Compute the product margins for the 1300 and T500 under the company's traditional costing system. (Round your Intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) cs 3300 T500 Total Product margin Required 2 > 2. Compute the product margins for B300 and T500 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 Requiredt 2 Required 3 Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) 3300 T500 Total Product margin B300 T500 % of % of Total Amount Amount Amount Traditional Cost System ped Total cost assigned to products $ 0 $ 0 $ SOK Total cost $ B300 T500 Int % of Total Amount % of Total Amount Total Amount Amount Amount int Activity-Based Costing System Direct costs ences Indirect costs: $ $ 0 Total cost assigned to products Costs not assigned to products Total cost $