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Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the 8300 and the T500. An

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Comparing Traditional and Activity-Based Product Margins (LO7-1, LO7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the 8300 and the T500. An a statement for the most recent period is shown: Cost of goods sold Gross margin Selling and administrative expenses 1,228,468 530,740 Hi- Tek produced and sold 60.000 units of B300 at a price of S21 per unit and 12.800 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to pr oducts 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 T500 Direct labor Manufacturing overhead Cost of goods sold s 400,880 $162,0ee $ 562,800 162,700 502,9e0 s 1,228,468 s 120,600 s 42,100 to search

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