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 $60,400$ units of $B300$ at a price of $$19$ per unit and $12,600$ units of $T500$ at a price of $$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 $$50,000$ and $$108,000$ 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 the B$300$ and T$500$ under the company"s traditional costing system.

$2$ 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.

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Required $3$

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.$)$ Requlred:

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

$2$ 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.

Answer is not complete.

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

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

be indicated by a minus sign. Round your intermediate calculations to $2$ decimal places.$)2$ Compute the product margins for B$300$ and T$500$ under the activity$-$based costing system.

$3.$ Prepare a quantitative comparison of the traditional and activity$-$based cost assignments.

Answer is not complete.

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

Required $2$

Required $3$

Prepare a quantitative comparison of the traditional and activity$-$based cost assignments. $($Round your intermediate calculations to $2$ decimal places and "Percentage" answers to $1$ decimal place and and other answers to the nearesHi$-$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 Manufacturing Incorporated

Income Statement

Sales $ $1,639,000$

Cost of goods sold $1,212,210$

Gross margin $426,790$

Selling and administrative expenses $640,000$

Net operating loss $ $(213,210)$

Hi$-$Tek produced and sold $60,400$ units of B$300$ at a price of $$19$ per unit and $12,600$ units of T$500$ at a price of $$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:

B$300$ T$500$ Total

Direct materials $ $400,900$ $ $162,300$ $ $563,200$

Direct labor $ $120,400$ $ $42,000162,400$

Manufacturing overhead $486,610$

Cost of goods sold $ $1,212,210$

The company has created an activity$-$based costing system to evaluate the profitability of its products. Hi$-$Tek$$s ABC implementation team concluded that $$50,000$ and $$108,000$ of the company$$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:

Activity Cost Pool $($and Activity Measure$)$ Manufacturing Overhead Activity

B$300$ T$500$ Total

Machining $($machine$-$hours$)$ $ $199,03090,70062,400153,100$

Setups $($setup hours$)126,28078230308$

Product$-$sustaining $($number of products$)100,600112$

Other $($organization$-$sustaining costs$)60,700$ NA NA NA

Total manufacturing overhead cost $ $486,610$

Required:

$1.$ Compute the product margins for the B$300$ and T$500$ under the company$$s traditional costing system.

$2.$ Compute the product margins for B$300$ and T$500$ under the activity$-$based costing system.

$3.$ Prepare a quantitative comparison of the traditional and activity$-$based cost assignments.