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 below:

Hi-Tek Manufacturing Inc Income Statement $1,699,300 Sales 1,272,990 Cost of goods sold Gross margin 426,310 640,000 Selling and administrative expenses (213,690) Net operating loss HiTek 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 $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: B300 T500 Total 400,600 162,600 563,200 Direct materials 121,000 42,400 163,400 Direct labor Manufacturing overhead 546,390 1,272,990 Cost of goods sold