3 Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi Tck Manufacturing Inc. Incone Statenent Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,627,500 1,249,266 378, 240 649,00 $ (261,760) dook Hi-Tek produced and sold 60,000 units of B300 at a price of $19 per unit and 12,500 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: Direct materials Direct labar Manufacturing overhead Cost of goods sold B300 T580 Total S 408,598 $ 162,800 $ 563,308 s 128,78 $ 42,890 162,70 523,267 $ 1,249,26 The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $100,000 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 tearr also distributed the company's manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measurel Nachining machine-hours) Setups (setup hours Product-sustaining inumber of products) Other forganization-sustaining costs) Total manufacturing overhead cost Manufacturing Activity Overhead 8308 T580 Total $ 214,480 98,388 62,920 153,208 408 146,78 78 284 35 101,800 1 1 2 60,200 NA NA NA $ 523,260 Required: 1. Compute the product margins for the B300 and 1500 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. Complete this question by entering your answers in the tabs below. 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. 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 Required 1 Required 2 > 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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.) B300 T500 Total Product margin $ 0 3 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place and and ather answers to the nearest whole dollar amounts.) B300 T500 Total Book % of % of Amount Amount Amount %6 % % Inditional Cost System Direct labor Direct materials Manufacturing overhead Total cost asigned to products Selling and administrative Total out % S 0 $ 0 S 0 S D) B300 T500 Total % of Total Amount Amount Amount Total Amount Amount Activity-Based Costing System Direct basis: % % % Indirect costs: 9 % S D $ 0 D Total cost assigned to products Costs not assigned to products: Total wust IS