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 Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,757,400 1,225,532 531,368 620.000 $ (88,132) Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,700 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 B309 $ 400,100 $ 120,200 7500 $ 162,580 $ 42,100 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562,600 162,300 se0,632 $ 1,225,532 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 $109,000 of the company's advertising expenses could be directly traced to 1300 and 1500, respectively. The remainder of the selling and administrative expenses was organization sustaining in nature. The ABC team also der 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 Cand Activity Measure) Machining machine-hours) Setups (setup hours) Product-sustaining number of products) Other (organization sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 200,352 130,618 101,400 60,200 $ 500, 632 Activity 8300 T500 Total 90,700 62,500 153,200 77 220 297 1 1 2 NA MA 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 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 81300 1500 Total ol % of Amount Amount Amount Traditional Cost System Machining Setups Product sustaining Total cost assigned to products % % % % % % $ 0 $ 0 $ 0 Total cost $ 0 T500 Total B300 % of Total Amount 9 of Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Direct materials 400,100 162,500.0 % $ 12.8% Direct labor % 9 Manufacturing overhead Indirect costs Machining 70 % % % Direct labor Manufacturing overhead Indirect costs Machining Setups Product sustaining Total cost assigned to products Costs not assigned to products: Selling and administrative Other % % $ 400,100 $ 0 Total cost $ 0