H$1-$Tek Manufacturing, Incorporated, makes two types of Industrlal component parts$-$the B$300$ and the T$500.$ An absorption costing

income statement for the most recent perlod is shown:

HI$-$Tek produced and sold $60,400$ units of $B300$ at a price of $$20$ per unit and $12,700$ units of T$500$ at a price of $$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:

The company has created an activity$-0$ased costing system to evaluate the profitability of Its products. Hil$-$Tek's ABC Implementation

team concluded that $$56,000$ and $$108,000$ of the company's advert'sing expenses could be directly traced to B$300$ and T$500,$

respectlvely. The remalnder of the selling and administratlve expenses was organization$-$sustaining in nature. The ABC team also

olstributed the company's manufacturing overnesd to four activitles as shown below:

Activity Cost pool $($and Activity Measure$)$

Machining $($aachine$-$hours$)$

Setups $($setup hours$)$

product$-$sustaining $($number of products$)$

other $($organization$-$sustaining costs$)$

Total manufacturing overhead cost

Required:

Compute the product margins for the B$300$ and T$500$ under the company's tradltional costing system.

$2$ Compute the product margins for B$300$ and T$500$ under the activity$-$based costing system.

Prepare a quantitative comparlson of the traditional and activity$-$based cost assignments.

Complete this question by entering your answers in the tabs below.

Prepare a quantitative comparisan of the traditianal and activity$-$based cost assignments. $($Round your intermediate calculatians to $2$ decim

places and "Percentage" answers to $1$ decimal place and and ather answers to the nearest whole doilsr amounts.$]$