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: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,770,500 cost of goods sold 1,248,992 Gross margin 521508 Selling and administrative expenses 570,300 Net operating loss (48,492) Hi-Tek produced and sold 60.500 units of B300 at a price of $21 per unit and 12,500 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: B300 T500 Total Direct materinis $ 400,300 $ 162,200 $ 562,500 Direct labor $ 120,200 $ 42, 400 162,600 Manufacturing overhead 523,892 Cost of goods sold $ 1,248,992 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC Implementation team concluded that $56,000 and $105,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 7500 Total Machining machine-hours) $ 206,992 90, 100 62,100 152,200 Setups (setup hours) 155,400 70 300 370 Product-sustaining (number of products) 100, 800 1 2 other (organization-sustaining costs) 60, 708 NA Total manufacturing overhead cost $ 523,892 1 NA NA Required: Required 2 Required a Compute the product margins for the 1300 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) 3300 T500 Total Product margin Required 1 Required 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 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 places and "Percentage answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total 9 of 96 of Amount Amount Amount Traditional Cost System 96 9 96 96 96 96 Total cost assigned to products Total cost B300 T500 Total Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs 96 96 % %% 96 96 Indirect costs: 96 96 %% 96 96 96 Total cost assigned to products Costs not assigned to products: Total cost