Hi-Tek Manufacturing, Inc, makes two types of industrial component parts the 8300 and the T500 An absorption costing income statement for the most recent period is shown Tek Morint Inc. Income State Sa Cort of Bodde sold Grott Selline and disastrative expenses liet operating 1017 $ 1.753.700 1.239.100 STA, 540 630.000 $115.400) Hi-Tek produced and sold 60.200 units of B300 at a price of $21 per unit and 12,500 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. Direct terases Direct labor Meting overhead cost of roads sold B300 1500 Total $ 400,900 $ 162,200 $ 563.100 3 120,100 $42.000 162.900 511.100 $ 1.237.100 The company has created an activity-based costing system to evaluate the profitability of its products Hi Tek's ABC implementation team concluded that $52.000 and $100,000 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. 0304 acturi Overhead $ 205.020 143.640 101,600 60.000 $ BIOD tavit Cod Po and Activitate) Hochining schiera) Setpeetup Productionber of products the corner rotating oota) To turnovechead coat Active 50,500 62.300 270 Total 153.000 342 NA NA ME Required: Compute the product margins for the B300 and 1500 under the comany's traditional costing system 2. Compute the product margins for B300 and T500 under the activity based costing system 8. Prepare a quantitative comparison of the traditional and activity based cost assignments Prev of 4 11: Neds 0 0 0 1100 xd The company has created an activity-based costing system to evaluate the profitability of its products Hi-Tek's ABC implementation team concluded that $52,000 and $100,000 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 Activity Cost Pool (and Activity Measure) Machining machine-hours) Setup (setup hours) Product-rustaining (number of products) Other Coreanization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 205,020 143.640 101,600 60.900 $ 511. 160 activity B300 T500 90,500 62,500 72 270 1 1 NA NA Total 163.000 342 2 NA W nces 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 this question by entering your answers in the tabs below. Required 1 Required 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.) B300 T500 Total Product margin S 0 ped The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $52,000 and $100,000 of the company's advertising expenses could be directly traced to 8300 and 1500, 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 Overhead $ 205,020 143.640 101,600 60.900 $511, 160 Activity Cout Pool (and Activity Measure) Machining machine-hours) Setup (setup hours) Product-sustaining number of products) Other (organization-sustaining costa) Total manufacturing overhead cost Activita B300 7500 Total 90.500 62.500 153,000 72 270 342 1 ! 2 NA NA NA rences 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 this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for 8300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 Total Product margin T500 $ 0 Proy 1 of 4 ! Next > 1 de pau LUMEN 8300 1500 Total of Amount Amount Amount Shipped Traditional Cost System Print Total cost assigned to products $ S References Total cost 5 B300 1500 Total % of Total Amount % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs % 195 96 Indirect costs % % % 5 $ Total cost assigned to products Costs not assigned to products Total cost 0 ped The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $52,000 and $100,000 of the company's advertising expenses could be directly traced to 8300 and 1500, 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 Overhead $ 205,020 143.640 101,600 60.900 $511, 160 Activity Cout Pool (and Activity Measure) Machining machine-hours) Setup (setup hours) Product-sustaining number of products) Other (organization-sustaining costa) Total manufacturing overhead cost Activita B300 7500 Total 90.500 62.500 153,000 72 270 342 1 ! 2 NA NA NA rences 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 this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for 8300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 Total Product margin T500 $ 0 Proy 1 of 4 ! Next > 1 de pau LUMEN 8300 1500 Total of Amount Amount Amount Shipped Traditional Cost System Print Total cost assigned to products $ S References Total cost 5 B300 1500 Total % of Total Amount % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs % 195 96 Indirect costs % % % 5 $ Total cost assigned to products Costs not assigned to products Total cost 0