Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the B300 and the 1500. An absorption costing income statement for the most recent period is shown HI-Tek Manufacturing Inc. Income Statement Sales $1,712,000 Cost of goods sold 3.211,482 Gross margin See, 516 Selling and administrative expenses 590,000 Net operating toss 5 (89,4821 Hi-Tek produced and sold 60,400 units of 8300 at a price of $20 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 plentwide 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 Cost of goods sold 30 T500 Total $400,700 5 162,500 S 563,200 $ 120,800 $ 42,800 163,600 484,582 $1,211,482 The company has created on activity based costing system to evaluate the profitability of its products. H.T'S ABC implementation team concluded that $60,000 and $105,000 of the company's advertising expenses could be directly traced to 1300 and 1500, 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 Measurel Overhead 300 1500 Tota Machining (nachine-hours) $ 201,432 90,400 2,20 152,600 Setups setup hours) 120,950 75 228 295 Product-sustaining (number of products) 101,400 1 1 2 Other (organization sustaining costs) 60,900 NA NA NA Total manufacturing overhead cost $ 484.682 eBook Required: 1. Compute the product margins for the 8300 and T500 under the company's traditional costing system, 2. Compute the product margins for 8300 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: Required 2 Required 3 Compute the product margins for the 8300 and TSOO under the company's traditional costing system. (Round your Intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) 3300 T500 Total Product margin Required 2 > Required 1 Required) 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 T500 Total Product margin 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.) 8300 T500 Total of % of Amount Amount Amount Traditional Cost System % % X % Total cost assigned to products Total cost 0300 Total % of Total Amount T500 % of Total Amount Amount Amount Amount Activity Based Costing System Direct costs % % % X Indirect costs % % % Total cost assigned to products Cost not assigned to products, Total cost B300 T500 Total % of Total Amount Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs: % % % % % % Indirect costs: % % % % % % Total cost assigned to products Costs not assigned to products: Total cost