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 Cont of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,701,400 1,239,914 461,486 590,000 $ (128,514) Hi-Tek produced and sold 60,500 units of B300 at a price of $20 per unit and 12,600 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: D300 $ 400,700 $ 120,100 1500 $ 162,800 42.900 Direct materiale Direct labor Manufacturing overhead Cost of goods sold Total $ 563,500 163,000 513.414 $ 1,239,914 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 3300 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 Overhead 212.114 140.00 100.400 300 90.400 nativity cost. Dool and motivity Measure Machining machine-hou ) Setups (setup houro) Product-ustaining number of productos Dlhor organization-staining costs) Total manufacturing overhead coat Activity 500 Total 2.200 152.600 NA NA $13.414 Hi-Tek produced and sold 60,500 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. The m 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. 1300 $ 400,700 $ 120,100 1500 $ 162,800 $ 42,900 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 563,500 163,000 513.414 $1,239,914 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 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: Manufacturing Overhead $ 212, 114 140, 800 100.400 60,100 S 513.414 Activity Coat Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Activity D300T300 Total 90,400 62,200 152,600 72 280 352 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. 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 500 Total Product margin 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 T 500 Total Product margin Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculatic places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total Amount Amount Amount Traditional Cost System Total cost assigned to products Total cost B300 T500 Total % of % of Total Amount Amount Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products