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Hil-Tek Manufacturing, Incorporatyed, makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is

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Hil-Tek Manufacturing, Incorporatyed, 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 60,400 units of 8300 at a price of $21 per unit and 12,800 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 $54,000 and $103,000 of the company's advertising expenses could be directly traced to 8300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company's manufocturing overheod to four activities as shown below: Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system. 2. Compute the product margins for B300 and 1500 under the activity based costing 5y stem. 3. Prepore a quantitative comparison of the traditional and activity based cost assignments. The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC Impl team concluded that $54,000 and $103,000 of the company's advertising expenses could be directly traced to B300 and respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC te distributed the company's manufacturing overhead to four activitles as shown below: Required: 1. Compute the product margins for the B300 and T500 under the company's 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 traditional and activity-based cost assignments. Complete thls question by entering your answers in the tabs below. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indlcated 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 intermedlate calc 2 decimal olaces and "Percentaoe" answers to 1 decimal blace and and other answers to the nearest whole dollar amoun

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