Hi-Tek Manufacturing, Inc, makes two types of Industrial component parts-the 8300 and the T500. An absorption costing income statement for the most recent period is shown Tek Manufacturing Inc. Income Statement $ Cost of goods sold Gross margin Selling and administrative expenses Niet operating loss 1,699,400 1,231,554 467,346 610,000 (142,154) $ Hi-Tek produced and sold 60,400 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 Direct materials Direct labor $ 400,200 $ 120,300 T500 $ 162.900 $ 42,900 Total $ 563.100 163,200 505,254 $ 1,231.554 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 $100.000 of the company's advertising expenses could be directly traced to 1300 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 $ 211, 554 0 90,000 Activity Cost Pool and Activity Measures Machining machine ours) Setups (setup hours Product sustaining (number of products) Other (organization sustaining costs) Total manufacturing overed Activity T500 62400 Tots 153.00 101,600 60,100 $505.24 Required: 1. Compute the product margins for the 300 and T500 under the company's traditional costing system 2. Compute the product margins for 300 and 1500 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. 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 $100,000 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. B300 90,900 Activity Tsee 62,400 Manufacturing Overhead $ 211,554 132, eee 101.600 50, 100 $ 505,254 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 Total 153,300 330 se 250 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 7500 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 T 500 Total Produd margin 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 $100,000 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 $ 211,554 132.000 101.600 0.100 S05.254 8300 90,900 80 Activity T500 62,400 250 Activity Cost Pool (and Activity Measure) Machining (achine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Total 153,300 330 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 Rdetired 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 Product margin Required 1 Required 2 Required 3 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.) B300 T500 Total Amount Amount Amount Traditional Cost System Total cost assigned to products Total cost B300 T500 Total % of Amount Total Amount Amount Total Amount Amount Activity Based Costing System Direct costs Total cost assigned to products $ 0 Costs not assigned to products Total cost