HI!

LO7-5] Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,695,500 1,237,290 458,210 640,000 $ (181,790) Hi-Tek produced and sold 60,400 units of B300 at a price of $20 per unit and 12,500 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: Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 T500 Total $ 400,700 $ 162,400 $ 563, 100 $ 120,400 $ 42,100 162,500 511,690 $ 1,237,290 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $100,000 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 $ 210,450 139,040 101,600 60,600 $ 511,690 B300 90,400 76 1 NA Activity T500 Total 62,100 152,500 240 316 1 2 NA 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 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 Complete this question by entering your answers in the tabs below. Traditional Cost System % % % % Required 1 Required 2 Required 3 % % Total cost assigned to products $ 0 $ 0 $ 0 Compute the product margins for the B300 and 1500 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 $ 01 B300 T500 Total B300 T500 Total Product margin $ % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs Complete this question by entering your answers in the tabs below. % % % % % % Required 1 Required 2 Required 3 Indirect costs: % % 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.) % % % 91 B300 T500 Total $ 0 $ Total cost assigned to products Costs not assigned to products: Product margin $ Total cost $ 0