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Hi - Tek Manufacturing. Incorporated, makes two types of industrial component parts - the B 3 0 0 and the T 5 0 0 .
HiTek Manufacturing. Incorporated, makes two types of industrial component partsthe B and the T An absorption costing income statement for the most recent period is shown: HiTek produced and sold units of at a price of $ per unit and units of at a price of $ 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 activitybased costing system to evaluate the profitability of its products. HiTek's ABC implementation team concluded that $ and $ of the company's advertising expenses could be directly traced to B and T respectively. The remainder of the selling and administrative expenses was organizationsustaining 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 and T under the company"s traditional costing system. Compute the product margins for B and T under the activitybased costing system. Prepare a quantitative comparison of the traditional and activitybased cost assignments. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Compute the product margins for the B and T under the company's traditional costing system. Round your intermediate calculations to decimal places and final answers to the nearest whole dollar amount. Requlred: Compute the product margins for the B and T under the company's traditional costing system. Compute the product margins for B and T under the activitybased costing system. Prepare a quantitative comparison of the traditional and activitybased cost assignments. Answer is not complete. Complete this question by entering your answers in the tabs below. Compute the product margins for B and T under the activitybased costing system. Negative product margins should be indicated by a minus sign. Round your intermediate calculations to decimal places. Compute the product margins for B and T under the activitybased costing system. Prepare a quantitative comparison of the traditional and activitybased cost assignments. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required Prepare a quantitative comparison of the traditional and activitybased cost assignments. Round your intermediate calculations to decimal places and "Percentage" answers to decimal place and and other answers to the nearesHiTek Manufacturing, Incorporated, makes two types of industrial component partsthe B and the T An absorption costing income statement for the most recent period is shown: HiTek Manufacturing Incorporated Income Statement Sales $ Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ HiTek produced and sold units of B at a price of $ per unit and units of T at a price of $ per unit. The companys 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 companys two product lines is shown below: B T Total Direct materials $ $ $ Direct labor $ $ Manufacturing overhead Cost of goods sold $ The company has created an activitybased costing system to evaluate the profitability of its products. HiTeks ABC implementation team concluded that $ and $ of the companys advertising expenses could be directly traced to B and T respectively. The remainder of the selling and administrative expenses was organizationsustaining in nature. The ABC team also distributed the companys manufacturing overhead to four activities as shown below: Activity Cost Pool and Activity Measure Manufacturing Overhead Activity B T Total Machining machinehours $ Setups setup hours Productsustaining number of products Other organizationsustaining costs NA NA NA Total manufacturing overhead cost $ Required: Compute the product margins for the B and T under the companys traditional costing system. Compute the product margins for B and T under the activitybased costing system. Prepare a quantitative comparison of the traditional and activitybased cost assignments.
HiTek Manufacturing. Incorporated, makes two types of industrial component partsthe B and the T An absorption costing
income statement for the most recent period is shown:
HiTek produced and sold units of at a price of $ per unit and units of at a price of $ 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 activitybased costing system to evaluate the profitability of its products. HiTek's ABC implementation
team concluded that $ and $ of the company's advertising expenses could be directly traced to B and T
respectively. The remainder of the selling and administrative expenses was organizationsustaining 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 and T under the company"s traditional costing system.
Compute the product margins for B and T under the activitybased costing system.
Prepare a quantitative comparison of the traditional and activitybased cost assignments.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required
Compute the product margins for the B and T under the company's traditional costing system. Round your
intermediate calculations to decimal places and final answers to the nearest whole dollar amount. Requlred:
Compute the product margins for the B and T under the company's traditional costing system.
Compute the product margins for B and T under the activitybased costing system.
Prepare a quantitative comparison of the traditional and activitybased cost assignments.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Compute the product margins for B and T under the activitybased costing system. Negative product margins should
be indicated by a minus sign. Round your intermediate calculations to decimal places. Compute the product margins for B and T under the activitybased costing system.
Prepare a quantitative comparison of the traditional and activitybased cost assignments.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required
Required
Prepare a quantitative comparison of the traditional and activitybased cost assignments. Round your intermediate calculations to decimal places and "Percentage" answers to decimal place and and other answers to the nearesHiTek Manufacturing, Incorporated, makes two types of industrial component partsthe B and the T An absorption costing income statement for the most recent period is shown:
HiTek Manufacturing Incorporated
Income Statement
Sales $
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating loss $
HiTek produced and sold units of B at a price of $ per unit and units of T at a price of $ per unit. The companys 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 companys two product lines is shown below:
B T Total
Direct materials $ $ $
Direct labor $ $
Manufacturing overhead
Cost of goods sold $
The company has created an activitybased costing system to evaluate the profitability of its products. HiTeks ABC implementation team concluded that $ and $ of the companys advertising expenses could be directly traced to B and T respectively. The remainder of the selling and administrative expenses was organizationsustaining in nature. The ABC team also distributed the companys manufacturing overhead to four activities as shown below:
Activity Cost Pool and Activity Measure Manufacturing Overhead Activity
B T Total
Machining machinehours $
Setups setup hours
Productsustaining number of products
Other organizationsustaining costs NA NA NA
Total manufacturing overhead cost $
Required:
Compute the product margins for the B and T under the companys traditional costing system.
Compute the product margins for B and T under the activitybased costing system.
Prepare a quantitative comparison of the traditional and activitybased cost assignments.
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