Chapter 7 HW Saved Help Save & Exit Submit 3 6.68 points Check my work Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,759,500 Cost of goods sold 1,251,406 Gross margin 508,094 Selling and administrative expenses 610,000 Net operating loss $_(101,906) 8 04:16.31 Skipped Chapter 7 HW Saved Help Save & Exit Submit Check my work 3 6.68 points Hi-Tek produced and sold 60,200 units of B300 at a price of $21 per unit and 12,700 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: 8 04:16:26 Skipped Chapter 7 HW Saved Help Save & Exit Submit 3 Check my work information relaung to the company s two product lines is shown below: 6.68 points Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 T500 Total $ 400,300 $ 162,800 $ 563, 100 $ 120,100 $ 42,100 162,200 526, 106 $1,251, 406 8 04:16:11 Skipped The company has created an activity-based costing system to Chapter 7 HW Saved Help Save & Exit Submit Check my work 3 6.68 points 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 $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: 8 04:16:03 Skipped Chapter 7 HW Saved Help Save & Exit Submit Check my work 3 viiicuuluuiu LIVIULUU JITUWILIUM. 6.68 points 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 Manufacturing Overhead $ 212, 106 151,800 101,800 60,400 $ 526,106 Act B300 T! 90,800 62, 75 1 NA 04:16:00 Skipped Required: Chapter 7 HW Saved Help Save & Exit Submit 3 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. 6.68 points 04:15:55 Skipped Complete this question by entering your answers in the tabs below