Complete this question by entering your answers in the tabs below. 1 Required 1 Required 2 Required 3 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: 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.) 8.33 points B300 T500 Total Product margin Skipped Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,651, 880 1,251, 194 488,66 578,888 $(169, 394) eBook Complete this question by entering your answers in the tabs below. . Hint Required 1 Required 2 Required 3 Hi-Tek produced and sold 60,200 units of B300 at a price of $19 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. B300 T500 Total Direct materials $ 489,580 $ 152,200 $ 562,700 Direct labor $ 120,689 $ 42,700 163, 380 Manufacturing overhead 525, 194 Cost of goods sold $ 1,251,194 Print References 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.) B300 T500 Tota! 501 5 of Amount Amount Amount Traditional Cost System 96 9 98 Total cost assigned to products The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51.000 and $106.000 of the company's advertising expenses could be directly traced to 300 and 1500. 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. 72 96 3320 Total 152, See Total cost Manufacturing Overhead $ 27,944 156,150 100, 400 be, zee $ 525,194 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 Activity Tsee se, 100 62,800 27 27e 1 1 NA NA 347 B300 T500 Total 2 NA Amount of Total Amount Amount 6 of Total Amount Amount Activity-Based Costing System Direct costs 96 IN Required: 1. Compute the product margins for the 1300 and T500 under the company's traditional costing system. Compute the product margins for 8300 and T500 under the activity-based costing system, 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 96 1 90 1961 Indired costs 96 181 Complete this question by entering your answers in the tabs below. % 96 Required 1 Required 2 Required 3 Total cost assigned to products Costs not assigned to products Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Total cost B300 T500 Total Product margin $ 0
