17 Sales H1-Tek Manufacturing Incorporated Income Statement Gross margin Selling and administrative expenses Cost of goods sold 5.75 points Net operating loss HBook $ 1,778,508 1,208,405 562,895 608,808 $ 137,905) HI-Tek produced and sold 60,500 units of 8300 at a price of $21 per unit and 12,500 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: Direct materials Fri Direct laber Manufacturing overhead Cost of goods sold Referances 1580 $ 480,680 s 162,900 $ 120,080 $ 42,300 Total $ 563,500 167,380 482,605 $ 1,208,405 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC Implementation team concluded that $57,000 and $105,000 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 Cost Pool (and Activity Measure) Machining Inachine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Required: Manufacturing Overhead S 286,685 113,820 181,480 B300 91,080 71 Activity T500 62,180 280 Total 153,180 1 1 271 2 60,780 NA NA NA s 482,685 1. Compute the product margins for the 8300 and T500 under the company's traditional costing system. 2. Compute the product margins for 8300 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 Required Z 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.) Product mergin B300 T500 < Required 1 Total Required 3> Check my work