Hi$-$Tek Manufacturing, Incorporated, makes two types of industrial component parts$-$the B$300$ and the T$500.$ An absorption

costing income statement for the most recent period is shown:

Hi$-$Tek produced and sold $60,000$ units of $B300$ at a price of $$20$ per unit and $12,600$ units of $1500$ at a price of $$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:

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

implementation team concluded that $$57,000$ and $$101,000$ 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:

Total manufacturing overhead cost $$525,270$

Required:

Compute the product margins for the $B300$ and $T500$ under the company's traditional costing system.

Compute the product margins for $B300$ and T$500$ under the activity$-$based costing system.

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

Complete this question by entering your answers in the tabs below.

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

intermediate calculations to $2$ decimal places and final answers to the nearest whole dollar amount.$)$