4 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: Hi-Tek Manufacturing Incorporated Income Statement 10 Sales $ 1, 712, 000 points Cost of goods sold 1, 253, 100 Gross margin 458, 900 Selling and administrative expenses 590, 000 Net operating loss $ (131, 100) eBook Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,700 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: Hint B300 T500 Total Direct materials $ 400, 100 $ 162, 400 $ 562, 500 Direct labor $ 120, 700 $ 42, 400 163, 100 Print Manufacturing overhead 527, 500 Cost of goods sold $ 1, 253, 100 References 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 $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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 207, 360 90, 800 62, 800 153, 600 Setups (setup hours) 158, 840 71 290 361 Product-sustaining (number of products) 100, 600 1 1 2 Other (organization-sustaining costs) 60, 700 NA NA NA Total manufacturing overhead cost $ 527, 500 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.distributed the company's manufacturing overnead to Tour activities as shown below: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 207, 360 90, 800 62,800 153, 600 158, 840 71 290 361 10 Setups (setup hours) Product-sustaining (number of products) 100 , 600 1 1 points Other (organization-sustaining costs) 60, 700 NA NA NA Total manufacturing overhead cost $ 527,500 Required: eBook 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 distributed the company's manufacturing overnead to Tour activities as shown below: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 207, 360 90, 800 62,800 153, 600 Setups (setup hours) 158, 840 71 290 361 10 Product-sustaining (number of products) 100 , 600 1 1 points Other (organization-sustaining costs) 60, 700 NA NA NA Total manufacturing overhead cost $ 527,500 Required: eBook 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 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 1500 Total Product margin Required 1 Required 2 Required 3 10 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 points decimal places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 % of % of Total Amount eBook Amount Amount Traditional Cost System Hint Print Total cost assigned to products Total cost References B300 T50 % of % of Total Amount Amount Total Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products Total cost