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: HL-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,639,000 1,227,000 412,690 57e,eee (158,000) Hi-Tek produced and sold 60,400 units of B300 at a price of $19 per unit and 12,600 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, 400 $ 162,700 $ 563,100 Direct labor $ 120,100 $ 42,300 162,400 Manufacturing overhead 501,500 Cost of goods sold $ 1,227,000 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $105,000 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: Activity Cost Pool (and Activity Measure) Machining machine-hours) Setups (setup hours) Product sustaining (number of products) other organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 209,610 130,790 100,600 60,500 $501,500 Activity 3300 T500 Total 90,600 62,400 153,000 79 240 319 1 1 2 NA NA NA Required: 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. villes ass Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 209,610 130,790 100,600 60,500 $ 501,500 Required: 1. Compute the product margins for the B300 and T500 under the compa 2. Compute the product margins for B300 and T500 under the activity-ba 3. Prepare a quantitative comparison of the traditional and activity-based 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 t intermediate calculations to 2 decimal places and final answers to the neare B300 T500 Total Product margin Require and administrative expenses v distributed the company's manufacturing overhead to four activities as s Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 209,610 130,790 100,600 60,500 $ 501,500 Required: 1. Compute the product margins for the B300 and T500 under the compa 2. Compute the product margins for B300 and T500 under the activity-ba 3. Prepare a quantitative comparison of the traditional and activity-based 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 co be indicated by a minus sign. Round your intermediate calculations to 2 decin B300 T500 Total Product margin