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-Te Manufacturing Inc. Income Statement Sales Cott af soods sold Gross margin Selling and administrative expenses Not operating loss $ 1,776,200 1.257.725 518,475 650,000 $ (131,525) Hi-Tek produced and sold 60.200 units of B300 at a price of $21 per unit and 12,800 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 Cost of goods sold 8300 TSO Total $400,400 $ 162,500 $ 563.000 $ 120,100 $ 42,00 163,000 531.225 $ 1,257,725 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $107.000 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: 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 $208,925 161,100 101,400 60, 300 $ 531,725 Activity B300 90,400 62,100 78 280 1 1 NA NA Total 152,500 358 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 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. Required: Required 2 Required 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 T600 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 T500 Total Product margin complison of the traditional and activity based cost assignments. (Round your intermediate calculations to 2 del places and Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts) 3300 T500 Total Saf Amount Amount Traditional Cost System Amount % 96 96 96 Total cost assigned to products Total cost B300 T500 Total y of W of Total Amount Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % 9 96 RR Indirect costs R % PITUUT Activity Based Costing System Direct costs % % 96 % Indirect costs 94 % % 96 Total cost assigned to products Costs not assigned to products Total cost