. . ACC1200 901 Fall 2022 Man; X Q Questionl - TEST CH 7,8 C X t Homework Help Q&A from( X 6 C' in eztomheducationcom i w ' Gmail \\ My DriveaGoogle... > YouTube 0 Maps Canvas Other Bookmarks TEST CH 7,8 0 Saved Help Save 3. Exit Submit Problem 7-16 (Algo) Comparing Traditional and Activity-Based Product Margins [LO71, LO7-3, LO7-4, LO7-5] 33.33 points Hi-Tek Manufacturing, Incorporated, makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: eEook Hi-Tek Manufacturing Incorporated Income Statement Him sales 3 1.710.000 Cost of goods sold 1,224,921 References Gross margin 495,079 Selling and administrative expenses 550, 000 Net operating loss 5 (64 , 921) Hi-Tek produced and sold 60,100 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: E300 T500 Total Direct materials 3 400,100 $ 162,400 5 562,500 Direct labor 5 120,600 $ 42,700 163,300 Manufacturing overhead 499,121 Cost of goods sold $ 1,224,921 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 and $104,000 of the company's advertising expenses could be directly traced to B300 and T500, respectively. The remainder ofthe 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: % Erey 1 of 3 NM > . . ACC1200 901 Fall 2022 Man; X Q Questionl - TEST CH 7,8 C X t Homework Help Q&A from( X 6 C' in eztomheducationcom . i i V, ' Gmail \\ My DriverGoogle... > YouTube 0 Maps Canvas Other Bookmarks TEST CH 7,8 0 Saved Help Save 3. Exit Submit 1 Hi-Tek produced and sold 60,100 units of BBOO 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: 33.'33 5300 1500 Total Wm\" Direct materials 3 400,100 $ 162,400 $ 562,500 Direct labor 5 120,500 5 42,700 163,300 Manufacturing overhead 499,121 680% Cost: of goods sold 3 1,224,921 Hint The company has created an activity-based costing system to evaluate the profitability of its products Hl-Tek's ABC implementation References team concluded that $55,000 and $104,000 of the company's advertising expenses could be directly traced to B300 and T500, respectively. The remainder ofthe 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 Activitx Activity Cost: Pool (and Activity Measure) Overhead 13300 T500 Total Machining {machine-hours) $ 204,421 90,900 62,800 153,700 Setups (setup hours) 132,300 75 240 315 Productsustaining (number of products) 101,600 1 1 2 other (organizationsustaining costs) 50,800 NA NA NA Total manufacturing overhead cost $ 499,121 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 activitybased cost assignments. Complete this qustion by entering your answers in the tabs below. % Prev 1 of 3 NM > ACC1200 901 Fall 2022 Manag X Question 1 - TEST CH 7,8 - Col X Homework Help - Q&A from Or x C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%25... Update : M Gmail I My Drive - Google... YouTube Maps Canvas Other Bookmarks TEST CH 7,8 i Saved Help Save & Exit Submit Check my work Other (organization-sustaining costs) 60, 800 NA NA NA Total manufacturing overhead cost $ 499, 121 Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system. 33.33 2. Compute the product margins for B300 and T500 under the activity-based costing system. points 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. eBook Complete this question by entering your answers in the tabs below. Hint References 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.) 330 T500 Total Product margin Mc Grav HillACC1200 901 Fall 2022 Manag X Question 1 - TEST CH 7,8 - Col X Homework Help - Q&A from Or x C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%25... * 0 Update : M Gmail My Drive - Google... YouTube e Maps Canvas Other Bookmarks TEST CH 7,8 i Saved Help Save & Exit Submit Check my work Other (organization-sustaining costs) 60, 800 NA NA NA Total manufacturing overhead cost $ 499, 121 Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system. 33.33 2. Compute the product margins for B300 and T500 under the activity-based costing system. points 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. eBook Complete this question by entering your answers in the tabs below. Hint References 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 Required 1 Required 3 > Mc Graw HillACC1200 901 Fall 2022 Manag X Question 1 - TEST CH 7,8 - Col X Homework Help - Q&A from Or x C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%25... Update : M Gmail My Drive - Google... YouTube Maps Canvas Other Bookmarks TEST CH 7,8 i Saved Help Save & Exit Submit Check my work 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 other answers to the nearest whole dollar amounts. ) 33.33 B300 T500 points % of % of Total Amount Amount Amount eBook Traditional Cost System Hint References Total cost assigned to products Total cost B300 T500 % of % of Total Amount Total Total Amount Amount Amount Amount Activity-Based Costin Direct costs: Mc Graw HillACC1200 901 Fall 2022 Manag X Question 1 - TEST CH 7,8 - Col X Homework Help - Q&A from Or x C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%25... Update : M Gmail My Drive - Google... YouTube Maps Canvas Other Bookmarks TEST CH 7,8 i Saved Help Save & Exit Submit Check my work B300 T500 % of % of Total Amount Amount Total Amount Amount Total 33.33 Amount points Activity-Based Costing System Direct costs eBook Hint References Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost Mc Graw Hill