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 $ 1,753,800 Cost of goods sold 1,222,596 Gross margin 531,204 Selling and administrative expenses 610,000 Net operating loss $ (78,796) Hi-Tek produced and sold 60.300 units of B300 at a price of $21 per unit and 12,500 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: B300 T500 Total Direct materials $ 400,500 $ 162,400 $ 562,900 Direct labor $ 120,400 $ 42,200 162,600 Manufacturing overhead 497,096 Cost of goods sold $1,222,596 The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 and $104,000 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 Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 201,696 90,700 62,100 152,800 Setups (setup hours) 134,800 77 337 Product-Sustaining (number of products) 100,400 2 Other (organization-sustaining costs) 60,200 Total manufacturing overhead cost $ 497,096 1 NA 260 1 NA NA 1. Compute the product margins for the B300 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 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 T500 Total Product margin $ 0 Required 2 > 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. es Complete this question by entering your answers in the tabs below. 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 $ 0 Check my work 7. Required: Required Required 3 Prepare a quantitative comparison of the traditional and activity based cast assignments. (Hound your intermediate calculations to 2 decimal places and Percentage answers to 1 decimal place and and other answers to the nearest whole dollar amounts) 4 Dot 5300 T500 Total Amount Amount Amount Traditional Cost System 5 Total cost assigned to products S 0 $ 0 $ Total cost 5 0 TO 6300 61 Total Amount 1500 of Total Amount Amount Amount Amount Nitivity-Based Costing System Dretos X Indirect costs 5 0 1 0 Total Cod to products Costs assigned to products