Hi-Tek Manufacturing Inc. makes two types of industrial component parts the 8300 and the T500. A absorption costing income statement for the most recent period is shown below Hi-Tek Manufacturing Income Statement Sales Cost of goods sold $1,764,000 1,210,412 Gross margin Selling and administrative expenses 553,588 560,000 Net operating loss $ (6,412) Hi-Tek produced and sold 60,000 units of 8300 at a price of $21 per unit and 12,600 units of T500 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 8300 T500 Total Direct materials Direct labor Manufacturing overhead S 400,500 162,300 $ 562,800 120,000 42.100 162,100 485,512 Cost of goods sold S 1,210,412 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 $110,000 of the company's advertising expenses could be directly traced to B300 and T500 , respectively. The remainder of the selling and 0 au rs