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Hi Tek manufacturing makes two types of industrial component parts Hi- Tek Manufacturing. Incorporated, makes two types of industrial component parts-the B300 and the T500.

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Hi- Tek Manufacturing. Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek produced and sold 60,300 units of B300 at a price of $19 per unit and 12,600 units of T500 ata pice 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 has created an activity-based costing system to evaluate the profitability of its products. HI-Tek's ABC implementation team concluded that $55,000 and $102,000 of the company's advertising expenses could be directly traced to B30O and T500. respectively. The remainder of the seling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company's manufacturing ovemead to four activities as shown below Required: 1. Compute the product margins for the B300 and 1500 under the companys traditional costing system. 2. Compute the product margins for B300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditionaland activity-based cost assignments Complete this question by entering your answers in the tabs below. Compute the product margins for the B300 and TS00 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Compute the product margins for 8300 and T500 under the activity-based costing system. (Negative product mergins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculat places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.)

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