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 $ 1,722,080 Cost of goods sold 1,239,216 Gross margin 482,684 Selling and administrative expenses 630,000 llet operating loss $ (147,316) Hi-Tek produced and sold 60,500 units of B300 at a price of $20 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 Bee T500 Total Direct materials $ 400,100 $ 162,800 $ 562,900 Direct labor $ 120,100 $ 42,600 162,200 Manufacturing overhead 513 716 Cost of goods sold $ 1,239,316 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 $106,000 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 300 T500 Total Machining machine-hours) $ 205,556 90,500 62,900 153,400 Setups (setup hours) 145,960 76 280 356 Product sustaining (number of products) 101,600 1 1 2 other (orstanization sustaining costs) 60,600 NA NA NA ** Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost 145,960 101,680 60,600 $ 513,716 1 NA 280 1 NA 356 2 MA Required: 1. Compute the product margins for the B300 and 7500 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: 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 Required Required 2 > 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 B300 and TSO under the activity based costing system. (Negative product margins should be Indicated by a minus sign. Round your intermediate calculations to 2 dedmal places.) B300 T500 Total Product margin Required: 1 Compute the product margins for the B300 and 1500 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: 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 Kof Amount Traditional Cost System Total % of Amount Amount S Total cost assigned to products Total cost T500 Total B300 % of Total Amount of Total Amount Amount Amount Amount % of Amount % of Total Amount Total Amount Amount Amount Activity Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost