560, eee Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costing Check my work Income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales Cost of goods sold $ 1,757,700 1,227,425 Gross margin 530, 275 Selling and administrative expenses Net operating loss $ (29,725) Hi-Tek produced and sold 60,300 units of B300 at a price of $21 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 Total Direct materials $ 400, 9ee $ 162,500 $ 563,400 $ 42,1ee Manufacturing overhead Cost of goods sold 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 $103.000 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: B300 T500 Direct labor $ 120,880 162,900 581,125 $ 1,227,425 Check my work Cost of goods sold $ 1,227,425 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 $103,000 of the company's advertising expenses could be directly traced to 1300 and 7500, 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 Meature) Overhead B300 T500 Machining (machine-hours) Total $ 207,225 90,900 62,600 15), 500 Setups (setup hours) 133,200 73 260 333 Product-sustaining number of products) 100,200 1 1 Other (organization sustaining costs) 60,500 NA NA Total sanufacturing overhead cost $ 501,125 2 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 1500 under the activity-based costing system 3. Prepare a quantitative comparison of the traditional and activity-based cost ossignments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3