Hi-Tek Manufacturing Inc. makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the mo st recent period is shown below: HI-lek Manufacturing Inc. Income Statement Sales Cost of s1.712,000 1,237,256 goods sold Gross margin 474,744 Selling and administrative expenses 640,000 Net operating loss S(165,256) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,700 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 Total B300 T500 400,100 162,100 Direct materials $$ 562,200 $42,700 163,200 511,856 120,500 Direct labor $ Manufacturing overhead Cost of goods s1,237,256 sold The company has created an activity-based costing system to evaluate the profitability of its products Hi-Tek's ABC implementation team concluded that $57,000 and $110,000 of the company's advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization- sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below