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 Ine. Income Statement Sales $ 1,651,800 Cont of goods sold -1,205,524 Gross margin 446,276 Selling and administrative expenses 630,000 Net operating loss $ (183,724) Hi-Tek produced and sold 60,200 units of B300 at a price of $19 per unit and 12,700 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 lobor dollars as the allocation base. Additional Information relating to the company's two product lines is shown below: B300 7500 $ 401,000 $162,200 $ 120,000 $ 42,900 Direct materials Direct labor Manufacturing overhead Coat of goods sold Total $ 563,200 162,900 479,424 51,205,524 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $60,000 and $108,000 of the company's advertising expenses could be directly traced to 1300 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 coats) Total manufacturing overhead cost Manufacturing Overhead $ 200,904 118,020 100,200 60,300 $ 479,424 Activity B300 T500 Total 90,200 62,000 152,200 71 210 281 1 1 2 NA NA 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 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 8300 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