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Hi - Tek Manufacturing, Inc., makes two types of industrial component parts - the B 3 0 0 and the T 5 0 0 .
HiTek Manufacturing, Inc., makes two types of industrial component partsthe B and the T An absorption costing income statement for the most recent period is shown: HiTek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ $ HiTek produced and sold units of B at a price of $ per unit and units of T at a price of $ 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 $ $ $ $ Total $ $ The company has created an activitybased costing system to evaluate the profitability of its products. HiTek's ABC implementation team concluded that $ and $ of the company's advertising expenses could be directly traced to B and T Tespectively. The remainder of the selling and administrative expenses was organizationsustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown: Activity Cost Pool and Activity Measure Manufacturing Overhead Activity B T Total Machining machinehours $ Setups setup hours Productsustaining number of products Other organizationsustaining costs NA NA NA Total manufacturing overhead cost. $
HiTek Manufacturing, Inc., makes two types of industrial component partsthe B and the
T An absorption costing income statement for the most recent period is shown:
HiTek Manufacturing Inc.
Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating loss
$
$
HiTek produced and sold units of B at a price of $ per unit and units of T at a price of $ 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
$
$
$
$
Total
$
$
The company has created an activitybased costing system to evaluate the profitability of its products. HiTek's ABC implementation team concluded that $ and $ of the company's advertising expenses could be directly traced to B and T Tespectively. The remainder of the selling and administrative expenses was organizationsustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown:
Activity Cost Pool and Activity Measure
Manufacturing
Overhead
Activity
B
T
Total
Machining machinehours
$
Setups setup hours
Productsustaining number of products
Other organizationsustaining costs
NA
NA
NA
Total manufacturing overhead cost.
$
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