Hi-Tek Manufacturing, In., 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 Manufacturing Inc. Income Statement Sales 1,699,300 1,248,150 451,150 Cost of goods sold Gross margin Selling and administrative expenses 650,000 (198,850) Net operating loss Hi-Tek prod 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: ed and sold 60,200 units of B300 at a price of $20 per unit and 12,700 units of T500 at a price of $39 per unit. The Total 0 T500 Direct materials $400,900 $ 162,700 $ 563,600 162,800 Direct labor 120,400 42,400 Manufacturing overhead 521,750 Cost of goods sold 1,248,150 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $107,000 of the company's advertising expenses could be directly traced to B300 and T500, 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Overhead Total B300 T500 211,830 90,900 62,600 260 153,500 148,720 100,600 78 338 1 1 2 60,600 NA NA NA 521,750 Total manufacturing overhead cost 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. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indi te r a minus sign. Round your intermediate calculations to 2 decimal places.) T500 B300 Total Product margin $ Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) 300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products 0 Total cost 500 300 Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % Indirect costs: % % % % % % Total cost assigned to products Costs not assigned to products: $ 0 $ 0 0 Total cost