16 5.88 points Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: H1-Tek Manufacturing Incorporated Income Statement Sales $ 1,640,900 Cost of goods sold 1,235,856 Gross margin 405, 044 Selling and administrative expenses 640,000 Net operating loss $ (234,956) eBook Hint Print References Hi-Tek produced and sold 60,500 units of 8300 at a price of $19 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: B300 T500 Total Direct materials $ 400,900 $ 162,600 $ 563,500 Direct labor $ 120, 100 $ 42,200 162,300 Manufacturing overhead 510,056 Cost of goods sold $ 1,235,856 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $58,000 and $101,000 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 Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 204,216 90,300 62,100 152,400 Setups (setup hours) 143,640 72 270 342 Product-sustaining (number of products) 101,800 1 1 2 Other (organization-sustaining costs) 60,400 NA NA NA Total manufacturing overhead cost $ 510,056 Required: 1. Compute the product margins for the 8300 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 Prena nantitatiua marison of the traditional and actw.hacerlost asiAnments 16 distributed the companys manufacturing overead to tour activities as snown below: Manufacturing Activity Cost Pool (and Activity Measure) Overhead B300 Machining (machine-hours) $ 204,216 90,300 Setups (setup hours) 143,640 72 Product-sustaining number of products) 101,800 1 Other (organization-sustaining costs) 60,400 Total manufacturing overhead cost $ 510,056 Activity T500 62,100 270 1 Total 152,400 342 2 NA 5.88 points NA NA eBook 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. Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required 3 References 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 $ Required 2 16 5.88 points 1 distributed the companys manufacturing overnead to tour activities as snown below: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B380 T500 Total Machining machine-hours) $ 204,216 90,300 62,100 152,400 Setups (setup hours) 143,640 72 270 342 Product-sustaining (number of products) 101,800 1 Other (organization-sustaining costs) 60,400 NA NA Total manufacturing overhead cost $ 510,056 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. 2 NA eBook Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required References 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.) B300 T500 Total Product margin Required)