HI-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin selling and administrative expenses Net operating loss $ 1,757,4e0 1,253,574 503,826 560,00e $ (56,174) Hi-Tek produced and sold 60,100 unlts of B300 at a price of $21 per unit and 12,700 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 T500 Total Direct materials Direct labor Manufacturing overhead Cost of goods sold $408, 188 $ 162, $ 562,488 162,9ee 528,274 $1,253,574 $ 120,80 42,1e0 The company has created an activity-based costing system to evaluate the profitability of its products. HI-Tek's ABC Implementation team concluded that $60,000 and $101,000 of the company's advertising expenses could be directly traced to B300 and T500 respectively. The remalnder of the selling and administrative expenses was organization-sustalning In nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below: Activit T500 9,7 62,20e 152,90e Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead 207,944 159,53e 100,9e 60,80 $528,274 B300 Total 30e 371 NA NA NA Requirec 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 this question by entering your answers in the tabs below Required 1Required 2 Required 3 Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) 300 T500 Total Product margin Required 1 Required2 >