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 $ 1,649,700 Cost of goods sold 1,233,210 Gross margin 416,490 Selling and administrative expenses 580,000 Net operating love $ (163,510) Hi-Tek produced and sold 60,300 units of B300 at a price of $19 per unit and 12,600 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. Direct materials Direct labor Manufacturing overhead Cont of goods sold 3300 1500 Total $ 400,200 $ 162,400$ 562,600 $ 120,900 $ 42,500 163,400 507,210 $ 1,233, 210 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $60,000 and $103,000 of the company's advertising expenses could be directly traced to 8300 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 Cont Pool (and Activity Measure) Overhead 2300 7500 Total Machining machine-hours) $ 199,290 90, 700 62.600 153,300 Setupe (Betup hours) 146,520 260 333 Product-sustaining number of product 100,800 1 Other organization-suntaining costs) 60.600 NA NA NA Total manufacturing overhead coat 3.507,210 73 2 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 $ 199,290 146,520 100,800 60,600 $ 507,210 Activity 3300 T500 Total 90,700 62,600 153,300 73 260 333 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 Rosa Required 2 >