Hi$-$Tek Manufacturing, Incorporated, makes two industrial component parts$-$B$300$ and T$500.$ An absorption costing income statement

for the most recent period is shown below:

Hi$-$Tek produced and sold $60,400$ units of B$300$ at a price of $$21$ per unit and $12,700$ units of T$500$ at a price of $$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:

The company created an activity$-$based costing system to evaluate the profitability of its products. Hi$-$Tek's ABC implementation team

concluded that $$59,000$ and $$103,000$ of the company's advertising expenses could be directly traced to B$300$ and T$500,$

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:

Required:

Compute the product margins for B $300$ and T $500$ under the company's traditional costing system.

Compute the product margins for B$300$ and T$500$ under the activity$-$based costing system.

Prepare a quantitative comparison of the traditional and activity$-$based cost assignments.