HI$-$Tek produced and sold $60,100$ units of B$300$ at a price of $$21$ per unit and $12,800$ units of T$500$ at a price of $$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 $$59,000$ and $$105,000$ 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:

Requlred:

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

Compute the product margins for $B300$ and $T500$ under the actlvity$-$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 $B300$ and $T500$ under the activity$-$based costing system.

Note: Negative product margins should be indicated by a minus sign. Round your intermediate calculations to $2$ decimal

places.