Help Save & Ext Subm Chapter 5 Homework Sevent 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: 11 -Tak Manufacturing The Tocontes tales Coat of goods sold Groes margin Helling and initiative expenses Net operating loss 02.100,000 1,600,000 500,000 550.000 (50,000) points Hi-Tek produced and sold 70,000 units of 8300 ot a price of $20 per unit and 17,500 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 300 T100 $ 456,300 $251,700 $ 200,000 $104,000 Directorial Die Lehr Manufacturing overhead Cost of good old Total 600.000 304,000 603.000 + 1.600.000 The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to 3300 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 heity Control and Motivity More Overhead 3300 1500 Total Machining his-hours) $ 213,500 90,000 2,500 152,500 fetup tup hours) 157.500 95 300 375 Produt-tumber of products 120,000 1 1 Other organisation- ( conta) 111000 BA Total manufacturing overhead cout $ 600,000 Chapter 5 Homework Seved 11 Activity Cont. Rool and Activity Menure) Machining (machine-hours) Setups (netup hours) Product-sustaining (number of products) other organisation-austaining costs) Total manufacturing overhead coat Manufacturing Overhead $ 213,500 157,500 120,000 117.000 $ 600,000 Metivity D300 T500 Total 90,000 62,500 152,500 75 300 375 1 1 2 NA MA NA 7 points 8 02:16 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. Skipped Complete this question by entering your answers in the tabs below. Book Print Required 1 Required 2 Required 3 References Compute the product margins for the B300 and T500 under the company's traditional costing system. B300 T500 Total Product margin $ 0 Required 2 > 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. 11 Complete this question by entering your answers in the tabs below. 7 points 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.) stepped Total B300 % of T500 % of Total Amount ebook Amount Total Amount Amount Amount Traditional Cost System References % % % $ 0 $ $ 0 Total cost assigned to products $ 0 Total cos 8300 % of Total Amount T500 of Amount Total Amount Amount Amount Adivity-Based Costing System Direct costs