Check my work 2 1,704,000 1,223,134 480, 866 580,000 $(99,134) Cost of goods sold in 10 ro expen@ Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit and 12,600 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. 8300 TS00 $400,600 162,800 563,400 163,400 496,334 $ 1,223,134 Direct labor $120,800 42,600 Cost of goods sold The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC entation team concluded that $59,000 and $107000 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 tivit B300 7500 Total 240 204,484 90,600 62,000 152,600 75 (setup hours) 129,150 101,800 315 Product-sustaining (number of produets) Other (organization-sustaining costs) NA NA NA 496,334 Prev 2 of 2 Next 10 2. the product margins for B300 and T500 under the activity-based costing system