cGraw-Hill Connect (D) ek 5- Homework i Saved M Question 2-Week 5- Homework Connecti "Help Save & Exit Submit Check my work 2 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 ts Income Statement Sales Cost of goods sold Gross margin eBook Selling and administrative expenses Hin Net operating loss Print eferences $ 2,100,000 1,600,000 500,000 550,000 $ (50,000) Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and 17,500 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: C aw Direct materials Direct labor Manufacturing overhead B300 T500 $ 436,300 $ 251,700 $200,000 $ 104,000 Cost of goods sold Total $ 688,000 304,088 608,000. $1,600,000 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $50,000 and $100,000 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: Activity Cost Pool (and Activity Measure). < Prev 2 of 5 Manufacturing Overhead Next 8300 Activity T500 Total 155 FAR