3 parts

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-Tek Manufacturing Inc. Income Statement $ 1,704,000 Cont of goods sold Gross margin 457,994 Selling and administrative expenses Net operating lose $(102,006) Sales 1, 246,006 560.000 es Hi-Tek produced and sold 60,200 units of B300 at a price of $20 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 aterials Direct labor Manufacturing overhead Cont of goods nola 300 T500 Total $ 400,300 $ 162,100 $ 562,400 $ 120,900 $ 42,700 163,600 320,006 $1,246,006 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51,000 and $106,000 of the company's advertising expenses could be directly traced to 8300 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) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of producto) Other organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 202,356 155,250 102,000 60,400 $ 520,006 Activity 3300 T500 Total 90,400 62,900 153,300 75 270 345 1 1 2 NA NA NA 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. 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 8300 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 Total Product margin T500 1. Compute the product margins for the B300 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 2 Required 3 Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins sho be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products Total cost B300 T500 Total % of % of Total Amount Amount Total Amount Amount Amount Activity-Based Costing System Direct costs: % % % % % % Indirect costs: % % % % Total cost assigned to products Costs not assigned to products Total cost A