Check my work Hi-Tek Manufacturing, Inc, makes two types of industrial component parts--the 8300 and the T500 An absorption costing income statement for the most recent period is shown Tek Manufacturing Inc. Incone Statenent Sales Cost of goods sold Gross sargin Selling and administrative expenses Net operating loss 11.00 $ 1,633,300 1, 212, 900 419.40 588.000 $ (160,600) Hi-Tek produced and sold 60.100 units of B300 at a price of $19 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: 830 T500 Total Direct materials 5400,700 162,90 s 563,640 Direct Labor $ 120,00 $ 42.580 163,200 Manufacturing overhead 407 180 Cost of goods sold $1,211,900 Prey 1 of 1 !!! Next 7 PM 66F Partly clo Du 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 $106,000 of the company's advertising expenses could be directly traced to 8300 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 $206,820 118,080 101,600 60.600 $ 487,100 Activity B300 7580 90,400 62,800 78 210 1 1 NA NA Total 153,200 288 2 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. Prey 1 of 1 BE BRE Next