Hi-Tek Manufacturing, Inc., makes two types of industrial component parts--the 8300 and the T500An absorption costing income statement for the most recent period is shown Tak Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,629,400 1,216,310 413,000 560,000 $ (146, 010) Hi-Tek produced and sold 60,100 units of 300 at a price of $19 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 materiais $ 400, 700 $ 162,700 $ 563, 400 Direct Labor $ 120, 700 S 42,000 162.700 Manufacturing overhead 490, 210 Cost of goods sold $1,216,310 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 $110,000 of the company's advertising expenses could be directly traced to 8300 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 8300 T500 Torni Machining (nachine-hours) $ 200.00 90, 800 62,200 153,000 Setups (setup hours) 120.830 71 210 281 Product sustaining number of products) 101.200 2 2 other (organization-sustaining costs) 60.100 NA NA Total manufacturing overhead cost $ 490,210 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 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 $110,000 of the company's advertising expenses could be directly traced to 8300 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 8300 1500 Total Machining (machine-hours) $208,950 90,000 62,200 153,000 setups (setup hours) 120,830 71 210 281 Product suntaining (number of products) 101,200 1 1 2 other (organization-sustaining costs) 00, 100 NA NA Total manufacturing overhead cost 5490,210 NA Required: 1 Compute the product margins for the 8300 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 the 3300 and 1500 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 Producten $ Required 2 > cost of goods sold >1,210, 31 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 $110,000 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 Cast Pool (and Activity Measure) Overhead B300 1500 Total Machining (machine-hours) $ 208,080 99,800 62,200 153,000 Setups (setup hours) 120,830 71 210 Product sustaining (number of products) 101,200 1 other organization sustaining costs) 60, 100 NA NA NA Total manufacturing overhead cost $ 490,210 281 2 1 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 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) 8300 T500 Total Product margin $ Required Required 2 Required 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 ot of Amount Amount Amount Traditional Cost System % 96 % $ 0 $ 0 0 Total cost assigned to products $ 0 Total cost Total 81300 % of Total Amount T500 % of Total Amount Amount Amount Anount Activity-Based Costing System Direct costs + X Indirect costs 36 18 90 s 0 5 0 0 Total cost assigned to products Cost not assigned to products $ 0 Total cost Next >