Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent per iod is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,705,300 Cost of goods sold 1,240,750 Gross margin 464,550 Selling and administrative expenses 560,000 Net operating loss $ (95,450 ) Hi-Tek produced and sold 60,500 units of B300 at a price of $20 per unit and 12,700 units of T500 at a price of $39 per unit. The companys 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 companys two product lines is shown below: B300 T500 Total Direct materials $ 400,300 $ 162,300 $ 562,600 Direct labor $ 120,000 $ 42,100 162,100 Manufacturing overhead 516,050 Cost of goods sold $ 1,240,750 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $52,000 and $109,000 of the companys 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 companys manufacturing overhead to four activities as shown below: Manufacturing Overhead Activity Activity Cost Pool (and Activity Measure) B300 T500 Total Machining (machine-hours) $ 214,340 90,900 62,200 153,100 Setups (setup hours) 140,610 77 250 327 Product-sustaining (number of products) 100,800 1 1 2 Other (organization-sustaining costs) 60,300 NA NA NA Total manufacturing overhead cost $ 516,050 Required: .

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. please its a big table