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 below: Hi-Tek Manufacturing Inc. Income Statement s 1,706,000 Sales Cost of goods sold 251, 116 454,884 Gross margin Selling and administrative expenses 550.000 Net operating loss 95, 116 HiTek produced and sold 50, 100 units of B300 at a price of S20 per unit and 12,600 units of T500 at a price of S40 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: s 400,300 s 162,700 S 563,000 Direct materials Direct labor S 120,900 S 42,700 163,600 Manufacturing overhead 524,516 1,251,116 Cost of goods sold The company has created an activity-based costing system to evaluate the profitability of its products. Tek's ABC implementation team concluded that $58,000 and $109,000 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 to four activities as shown below: Manufacturing Activity Cost Pool (and Activity Measure) Machining (machine-hours) 203,750 90,500 62,700 153,200 Setups (setup hours) 159,960 Product sustaining (number of products) 100,000 Other (organization-sustaining costs) 60,800 524,516 Total manufacturing overhead cost