Hi-Tek Manufacturing, Inc., makes two types of Industrial component parts-the B300 and the T500. An absorption costing Income statement for the most recent perlod Is shown: Hi-Tek Manufacturing Inc Income Statement Sales Cost of goods sold Gross nargin Selling and administrative expenses $ 1,783,308 1,212,785 498,595 658,800 Net operating loss $159,485) Hi-Tek produced and sold 60,400 unlts 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 T500 Total Direct materials Direct Labor Manufacturing overhead Cost of goods sold $ 488,280 162,880 563,808 162,986 486,885 S 1,212,785 $120,488 $ 42,500 The company has created an activity-based costing system to evaluate the profitabillity of its products. Hi-Tek's ABC Implementation team concluded that $59,000 and $109.000 of the company's advertising expenses could be directly traced to B300 and T500 respectively. The remalnder of the selling and administrative expenses was organization-sustalning In nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below Manufacturing Total Activity Cost Pool (and Activity Measure) Machining (na Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total nanufacturing overhead cost 300 $.201 , e85 123,828 181,288 68,788 $ 486,885 9e,see 72 63,000 23e 153,see 382 NA NA NA 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 quantitatlve comparison of the traditional and activity-based cost asslgnments. Complete this question by entering your answers in the tabs below