Check my work 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: s1,710,000 Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,235,260 620,000 (145,260) s Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700 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: B300T500 Total Direct materials Direct labor Manufacturing overhead $ 400,500 $163,000 563,500 120,30o 42,600162,900 508,860 Cost of goods sold $ 1,235,260 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 and $105,000 of the company's advertising expenses could be directly traced to 8300 and T500, Prev 1 of 1 Next 5