Check my 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: Hi-Tek Manufacturing Ine. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,753,500 1,237,916 515,584 620,000 $ (104.416) Hi-Tek produced and sold 60,100 units of B300 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 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: Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 T500 $ 400, 400 $ 162,800 $ 120,200 $ 42,200 Total $ 563,200 162,400 512, 316 $ 1,237,916 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $58,000 and $102.000 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: 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 $ 208, 216 143,000 100,400 60,700 $ 512,316 Activity B300 T500 Total 91,000 62,100 153, 100 75 250 325 1 1 2 NA NA NA Me Lulipany Has Liedleu an activity-based costing system to evaluate the profitability of its products. Hl-le team concluded that $58,000 and $102,000 of the company's advertising expenses could be directly trace respectively. The remainder of the selling and administrative expenses was organization-sustaining in natur distributed the company's manufacturing overhead to four activities as shown below: 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 $ 208,216 143,000 100, 400 60,700 $ 512,316 Activity B300 T500 Total 91,000 62,100 153, 100 75 250 325 1 1 2 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 1 Required 2 Required 3 Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round you Intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin