Hi-Tek Manufacturing Inc. makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown below: $ Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,706,000 1,224.470 481,530 600,000 (118,470) $ 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 $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: B300 $ 400,800 $ 120,400 T500 $ 162,600 $ 42,600 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 563,400 163,000 498,070 $ 1,224,470 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51,000 and $107,000 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 T500 63,000 B300 90,000 74 Manufacturing Overhead $ 206.550 130,720 100,600 60,200 $ 498,070 Total 153,000 304 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 230 1 NA NA NA Required 1 Comencent kr 3C : TSOO H ry'run ingyem Do not round your overhand BOLO TSEO Told 2. Comote the product mergina for 320 end T530 under the activity-based cooling system (Negative product marg 2.700 500 Total Pomurgin 3. Prepare a quantitate comparison of the traditional and activity based og assignments. (Do not round your overhead rate. Round your other intermediate calculations and final answers to the nearest whole number. Round your "Percentage answer to 1 decimal place. 12.9 ..1234 should be cntcred as T500 of Amount Tatal Amount Traditional costat Clrecl malerisi Director Manuching Out Tolassa rochas Bling and w B300 T500 Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Direct materials Direct labor Advertising expense Indirect costs: Machining Setups Product sustaining $ Total cost assigned to products Costs not assigned to products: Selling and administrative Product sustaining Total cost