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I need hep with required question #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: Hi-Tek Manufacturing Inc. Sales Income Statement Cost of goods sold 1,766,100 Gross margin 1,228,090 Selling and administrative expenses 538,010 590,000 Net operating loss (51,990) Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,600 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: Direct materials B300 T500 Total Direct labor 400,200 120,400 $ 162,500 $ 562,700 Manufacturing overhead 42,400 162,800 502,590 Cost of goods sold $ 1,228,090 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $108,000 of the company's advertising expenses could be directly traced to B300 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) Manufacturing Overhead Activity Machining (machine-hours) B300 T500 Total Setups (setup hours) $ 211,140 0,900 62,100 153,000 Product-sustaining (number of products) 129,150 75 240 315 Other (organization-sustaining costs) 01,600 60,700 NA NA NA Total manufacturing overhead cost $ 502,590 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. Required 1 Required 2 Required 3 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 Total % of % of Amount Amount Amount Traditional Cost System % % Total cost assigned to products S S $ Total cost B300 T500 Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products S S o Costs not assigned to products Total cost