HI-Tek Manufacturing Inc. makes two types of Industrial component parts the B300 and the T500. An absorption costing income statement for the most recent period is shown R1-T- Manufacturing Inc. Income Statement Sales Coot of goods sold Crot argin Selling and danastratave expenses Net operating loss $ 1.751.700 1.237.160 514,540 630.000 $ (115, 460) HTek produced and sold 60.200 units of 8300 at a price of S21 per unit and 12,500 units of 1500 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 Dret Material Dated 1sbox Yanufacturant overhead Cost of toode told B300 $ 400.000 $ 120, 100 7500 $102. 200 $ 42.800 Tatot $ 563.100 162.900 $11. 160 3 1.237.360 The company has created an activity-based costing system to evaluate the profitability of its products. HiTek's ABC implementation team concluded that $52.000 and $100,000 of the company's advertising expenses could be directly traced to 1300 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 stavy cott Pool and activity Me Marburant (achine-hode) Setup tu hou) Product cainnt bet of product Other organitortant roste Tot aturan overbead out Mactant Overhead $ 205,020 143.640 101.600 60.300 3 180 Activity 200 7500 Totu 20.600 2.500 153 000 270 342 NA NA NA Required: Compute the product margins for the 8300 and T500 under the company's traditional costing system 2 Gompute the product margins for B300 and T500 under the activity based costing system 3. Repare 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. Hl-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 Coat Pool (and Activity Meature) Machining (nachine-hours) Setupe retup hours) Product-sustaining number of products) Other (oranization-staining costs) Total manufacturing overhead cost Manufacturing Overhead $ 205,020 143.640 101.600 60.900 $ 511.160 B300 90.500 72 1 NA Activity T500 62,500 270 1 NA Total 153.000 342 2 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 Aquired 2 Required 3 Compute the product margins for B300 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 T500 Total Product margin 0 De 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 (nachane-hours) Setup (setup hours) Product-zat sining number of products) Other organization sustaining corte) Total manufacturing overhead cost Manufacturing Overhead $ 205,020 143.640 101.600 60, 900 $511. 160 B300 90.500 72 1 NA Activity T500 62.500 270 1 NA Total 153.000 342 2 NA 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 8300 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 1500 Total Product margin 0 Required 2 > 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) B300 1500 Total % of % of Amount Amount Amount Traditional Cost System % % % % erences Total cost assigned to products S 0 $ 0 $ Total cost S 0 B300 T500 Total W of Total Amount % of Total Amount Amount Amount Amount Activity Based Costing System Direct costs % % % % % Indirect costs % % Total cost assigned to products Costs not assigned to products 0 Total cost D