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ASAP!! I need help with this question please. Hi-Tek Manufacturing, Incorporated, mokes two types of industrial component parts-the 8300 and the T500. An absorption costing
ASAP!! I need help with this question please.
Hi-Tek Manufacturing, Incorporated, mokes two types of industrial component parts-the 8300 and the T500. An absorption costing incocse statement for the most recent period is shown: Hi-Tek produced and sold 60.100 units of 8300 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 overthead to products using a plantwide overtiead rate and ditect labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: The company has created an octivity-based costing system to evaluate the profitobility of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $102,000 of the company's advertising expenses could be directly traced to 8300 and 1500 , respectively. The remeinder of the selling and administrative expenses was organization-sustaining in nature. The ABC team aiso distributed the company's manufactuting overhead to four activities as thown below: Required: 1. Compute the product margins for the 8300 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. Compute the product margins for the 8300 and T500 under the company's traditional costing system. (Round your ntermediate calculations to 2 decimal places and final answers to the nearest whole dollor amount.) The company has created an activity-based costing system to ovaluate the profitability of its products. Hi-Tek's ABC Implementation team concluded that $53,000 and $102,000 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: 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. 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.) (Round your intermediate caloukations 0.2 Step by Step Solution
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