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 period is shown Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,693,500 1,212,756 480, 744 560,000 (79,256) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,500 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 $ 400,300 $ 120,200 Direct materials Direct labor Manufacturing overhead Cost of goods sold T500 Total $ 162,500 $ 562,800 $ 42,000 162,200 487,756 $1,212,756 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 $107000 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 (set up hours) Product -sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 204,886 121,77 100,800 60,300 $ 487,756 Activity 8300 T560 Total 98,780 62,280 152,988 77 228 297 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 Manufacturing Overhead $ 204,886 121,770 100,800 60,300 $ 487,756 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (set up hours) Product -sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Activity B300 T500 Total 90, 720 62,200 152,900 220 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 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 voyi Total cost assigned to products Total cost B300 T500 Total % of % of Total Amount Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs Total cost assigned to products Costs not assigned to products