Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: HI-Tek Manufacturing Inc. Income Statement Sales $ 1,755,600 cost of goods sold 1,239,273 Gross margin 516,327 Selling and administrative expenses 610, eee Net operating loss (93,673) $ Hi-Tek produced and sold 60,200 units of B300 at a price of $21 per unit and 12,600 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 materials Direct labor Manufacturing overhead Cost of goods sold 8300 T500 Total $400,000 $162,700 $ 563,000 $ 120,200 $ 43,000 163,200 511,073 $ 1,239,273 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $50,000 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: Activity Cost Pool (and Activity Measure) Machining machine-hours) Setups (setup hours) Product-sustaining (number of products other (organization-sustaining costs) Manufacturing overhead $ 200,823 150,750 181,400 60,100 90,680 75 1 NA Activity T500 62,700 260 1 NA Total 153,300 335 2 NA The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $50,000 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. 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 $ 200,823 150, 750 101,400 60, 180 $ 513,073 Activity B300 T5ee Total 90,600 62,7ee 153,3ee 75 260 335 1 1 2 NA NA 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 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 2 Compute the product margins for B300 and 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 Reguiled 2 Required 3 Compute the product margins for B300 and 1500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) 3300 1600 Product margin Total 0 Required 1 Required 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.) Total TO B000 of Sor Amount Amount Amount Traditional Cost System 0 Total cost assigned to products s 0 Total cost Total 3300 Hof Total Amount T600 % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs Indirecto Total cost assigned to products Costs rotacioned to products TOGG (Regulad