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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: HTek 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. HilTek'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 and 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. Required: Answer: B $ & T $ Answer: Answer:
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:
HTek 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. HilTek'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 and 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.
Required:
Answer: B $ & T $
Answer:
Answer:
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