Check my work 16 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: 0.29 Hi-Tek Manufacturing Incorporated Points Income Statement Sales $ 1, 757 , 400 Cost of goods sold 1, 240, 118 Gross margin 517, 282 Selling and administrative expenses 580, 000 eBook Net operating loss $ (62, 718) Hi-Tek produced and sold 60,100 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 Hint dollars as the allocation base. Additional information relating to the company's two product lines is shown below: B300 T500 Total Print Direct materials $ 400, 600 $ 162, 400 $ 563, 000 Direct labor $ 120, 800 $ 42, 100 162, 900 Manufacturing overhead 514, 218 Cost of goods sold $ 1, 240, 118 References The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $109,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 208, 488 90, 700 62, 600 153, 300 Setups (setup hours) 144, 730 73 280 353 Product-sustaining (number of products) 100, 000 Other (organization-sustaining costs) 61, 000 NA NA NA Total manufacturing overhead cost $ 514, 218 Required: . 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 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.) B300 T500 Total Product margin $ 0 16 Other (organization-sustaining costs) 61, 000 NA NA NA Total manufacturing overhead cost $ 514, 218 Required: 0.29 1. Compute the product margins for the B300 and T500 under the company's traditional costing system. points 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. eBook Required 1 Required 2 Required 3 Hint 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.) Print B300 T500 % of % of Total Amount References Amount Amount Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products $ 0 0 Selling and administrative Total cost B300 T500 % of % of Total Amount Amount Total Amount Amount Total Amount Activity-Based Costing System Direct costs: Direct materials Direct labor Advertising expense Indirect costs Machining Setups Product sustaining Total cost assigned to products $ 0 $ 0 Costs not assigned to products: Selling and administrative Other Total cost $