Help a Save Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts--the 8300 and the T500. An absorption costing Income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales $ 1,699,200 Cont of goods sold 1,223,407 Gross margin 475,793 Selling and administrative expenses 590,000 Net operating loss $ (114,207) 0 Hi-Tek produced and sold 60.000 units of 8300 at a price of $20 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 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: 1300 Direct materials 7500 Total $ 400,600 $ 162,600 $ 563,200 Direct labor $ 121,000 $ 42,900 163,900 Manufacturing overhead 496,307 Cost of goods sold $1,223,407 The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $102,000 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: Manufacturing Activity Activity cost pool and Activity Measure) Overhead 3300 T500 Machining machine-hours) Total $ 213,082 90,600 62,700 153,300 Setups (setup hours) 122,320 78 200 278 Product-sustaining (number of products 100,800 1 1 2 Other (organization-sustaining costs) 60, 100 NA NA NA Total manufacturing overhead cost $ 496,307 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 Prev 1 of 1 Hii Next - team concluded that $57,000 and $102,000 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) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 213,087 122,320 100,800 60.100 $ 496,307 B300 90,600 78 1 NA Activity T500 62,700 200 1 NA Total 153,300 278 2. NA 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. Required 1 Required 2 Required 3 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.) B300 T500 Total Product margin KN1 Required 2 > OS The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $102,000 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: Manufacturing Activity Activity Cost Pool (and Activity Mensure) Overhead B300 1500 Total Machining (machine-hours) $ 213,087 90,600 62,700 153,300 Setups (setup hours) 122,320 200 Product-sustaining (number of products) 100,800 1 Other (organization-sustaining costs) 60, 100 NA NA Total manufacturing overhead cost $ 496,307 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. 78 1 278 2 NA Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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.) B300 T500 Total Product margin (Required 1 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.) 8300 T500 % of % of Total Amount Amount Amount Traditional Cost System 8:43 Total cost assigned to products Total cost B300 T500 % of Total Amount Amount Total % of Total Amount Amount Amount Activity-Based Costing System Direct costs Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost