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: Tok Manufacturing Ino. Income Statement $1,641,000 cost of goods sold 1,219,158 dross margin selling and administrative expenses 630,000 Het operating loss $ (200,158) Sales 421,842 Hi-Tek produced and sold 60,300 units of B300 at a price of $19 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: 3300 1500 $ 400.300 $ 162, 100 $ 120,300 $ 42,600 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562,400 162,900 493,358 $1,219,158 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $52,000 and $105,000 of the company's advertising expenses could be directly traced to 1300 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 Meanuro) Overhead Total Machining machine-hours) $ 207,808 90,800 62.000 152,800 Setups (setup hours) 125.550 Product-sustaining (number of products) 100,400 Other (organization-sustaining conts) 60.100 Total manufacturing overhead coat $493,658 D300 T500 79 1 NA 200 1 NA 279 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. The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementatic team concluded that $52,000 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: activity Cont 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 $ 207,808 125,550 100,400 60,100 $ 493,858 Activity 3300 T500 Total 90,800 62.000 152,800 79 200 279 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 3 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 Required 2 > The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $52,000 and $105,000 of the company's advertising expenses could be directly traced to 1300 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 Manure) Machining (nachine-hours) Setup (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 207,808 125,550 100,400 60,100 $ 493,858 Activity 3300 T500 Total 90,800 62,000 152,800 79 200 279 1 1 2 NA NA NA Required: 1. Compute the product margins for the 8300 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 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.) 3300 Total Product margin T500 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $52,000 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: 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 $ 207,808 125,550 100,400 60,100 $ 493,858 Activity 8300 7500 Total 90,800 62,000 152,800 79 200 279 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 3 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 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % Total cost assigned to products % % % Total cost B300 T500 Total