1 points eBook Hht Print Refere nces Check my work A HiTek Manufacturing, Incorporated, makes two types of industrial component partsthe 8300 and the T500. An absorption costing income statement for the most recent period is shown: HisTek Manufacturing Incorporated I n came Statement Sales $ 1,715,800 Cost of goods sold 1,225,803 Gross margin 490,197 Selling and administrative expenses Names Net operating loss $ (79,383) HiTek produced and sold 60,400 units of B300 at a price of $20 per unit and 12,?00 units of T500 at a price of $40 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: 3388 T582 Total Direct materials $ 400,300 5 163,000 5 563,300 Direct labor $ 120,000 $ 42,669 162,639 Manufacturing overhead 499,903 Cost of goods sold $ 1,225,803 The company has created an activityibased costing system to evaluate the protability of its products. HiiTek's ABC implementation team concluded that $50,000 and $105,000 of the company's advertising expenses could be directly traced to 8300 and T500, respectively. The remainder ofthe selling and administrative expenses was organizationisustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below: Prev 1 of 3 ii! Next > '1 0 $91 D01 [1 \\_d Check my work distributed the company's manufacturing overhead to four activities as shown below: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 209, 473 90, 500 62, 400 152,900 5 Setups ( setup hours) 129, 430 71 230 301 points Product- sustaining (number of products) 100, 400 2 Other (organization-sustaining costs) 60, 600 NA NA NA O Total manufacturing overhead cost $ 499, 903 eBook Required: Hint 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. Print 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. References Complete this question by entering your answers in the tabs below. + Required 1 Required 2 Required 3 Compute the product margins for the B300 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.) B300 T500 Total Product margin $ 0 Mc Graw Hill 103polnts eBook HI'It Prim Refere nces Check my work ' . . . . Hanufacturlng A; Activity Cost Pool (and Activity Measure) Overhead B389 1590 Total Machining (machinehours) 5 289,473 96,568 62,488 152,930 1' Setup; (setup hours) 129,436 71 239 391 Product-sustaining (number of products) 180,406 1 1 2 c Other (organizationsustaining costs) 66,606 NA NA NA Total manufacturing overhead cost $ 499:933 6 Required: 1. Compute the product margins for the 3300 and T500 under the company's traditional costing system. 5' 2. Compute the product margins for 3300 and T500 under the activitybased costing system. 3. Prepare a quantitative comparison ofthe traditional and activitybased cost assignments. Complete this question by entering your answers in the tabs below. p-Dl Required 1 Required 2 Required 3 Compute the product ma ins for 3300 and T500 under the activityibased costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) I-i ( Required1 Required ) , Bray 1 of 3 [1 u Next > 3 Check my work 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. 5 Complete this question by entering your answers in the tabs below. points O eBook Required 1 Required 2 Required 3 Hint Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal Print places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) References B300 T500 % of % of Total Amount Q Amount Amount Traditional Cost System + Direct materials Direct labor Manufacturing overhead Total cost assigned to products $ 0 $ 0 $ Selling and administrative Total cost $ Mc Graw HillCheck my work UGHIIIly all auIIIsuauve Total cost $ B300 T500 % of % of 5 Total Amount Total Total points Amount Amount Amount Amount O Activity-Based Costing System eBook Direct costs: Hint Direct materials Direct labor Print Advertising expense References Indirect costs Machining Q Setups Product sustaining + Total cost assigned to products $ 0 $ 0 Costs not assigned to products: Selling and administrative Other Total cost $ O Mc Graw Hill 103