Assignment 6-3 Week 6 Problem Help Save & Exit Submit Check my work Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5 Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: 35 points Hi-Tek Manufacturing Inc Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1, 755, 60 1, 218, 615 eBook Print References 536, 985 576, 000 (33,015) Hi-Tek produced and sold 60,200 units of B300 at a price of $21 per unit and 12,600 units or T500 at a price or $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 T500 Total Direct materials Direct labor Manufacturing overhead Cost of goods sold S 400, 260 162,700 S 120,10042, 900 562,900 163, e00 492,715 $ 1,218, 615 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek'S ABC implementation team concluded that $54,000 and $100,000 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 Assignment 6-3 Week 6 Problem Help Save & Exit Submit Check my work The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek'S ABC implementation team concluded that $54,000 and $100,000 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 35 points Manufacturing Activit Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost 206, 415 125, 606 9, 70 62, 208 248 152, 90 314 eBook 74 Print 66, 500 492, 715 NA NA NA 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 activity-based cost assignments Complete this question by entering your answers in the tabs below. Required 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.) Assignment 6-3 week 6 Problem 6 Help Save &Exit Submit Check my work 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 activity-based cost assignments 35 points Complete this question by entering your answers in the tabs below. eBook Print References Required 1Required 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.) Product margin Required 2> Assignment 6-3 week 6 Problem 6 Help Save &Exit Submit Check my work 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 activity-based cost assignments 35 points Complete this question by entering your answers in the tabs below. eBook Print 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.) Product margin Required 1 Required 3> Assignment 6-3 week 6 Problem 6 Help Save & Exit Submit Check my work 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 activity-based cost assignments 35 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Print 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.) 96 of %of Traditional Cost System 96 96 Total cost assigned to products Total cost