Hi Tek Manufacturing Inc. makes two types ofindustrial componentparts-the B300 and the T500.An absorption costing income statementforthe most recent period is shown below Hi-Tek Manufacturing Inc Income Statement Sales $1,699,300 Cost of goods sold ,272,990 428,310 Gross margin Selling and administrative expenses 640.000 Net operating loss (213.090) Hi Tek produced and sold 60,200 units of B300 ata price of$20 per unitand 12,700 units ofT500 ata price of $39 per unit. The company's traditional costsystemallocates manufacturing overhead to products using a plantvide overhead rate and directlabor dollars as the allocation base.Additional information relating to the company's two product lines is shown below Direct materials 400.000 162,600 563,200 Direct labor 121,000 42,400 163,400 Manufacturing overhead 546,390 1.272.990 Cost of goods sold The company has created an activity-based costing system to evaluate the profitability ofits products. H-Teks ABC implementation team concluded that$53,000 and $108,000 ofthe company's advertising expenses could be directly traced to B300 and T500, respectively. The remainder ofthe 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 Cost Pool (and Activity Measure) Machining (machine-hours) 214.340 91.000 62,100 53,100 169.050 Setups (setup hours) 377 Product-sustaining (number of products) 02.000 Other (organization-sustaining costs) 60,400 546,390 Total manufacturing overhead cost