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 below: Tek Manufacturing Inc. ncome Statement 706,000 Sales 263,338 Cost of goods sold 442,662 Gross margin Selling and administrative expenses 630,000 (187,338) Net operating loss Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,600 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: T500 B300 Total Direct materials 4 00 162,900 563,100 Direct labor 120,800 42,100 162,900 Manufacturing overhead 537,338 Cost of goods sold 1,263,338 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that S52,000 and $107,000 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 Cost Pool (and Activity Measure) Overhead B300 T500 211,968 Machining (machine-hours) 90,900 62,700 153,600 Setups (setup hours) 162,970 379 Product-sustaining (number of products) 101,600 NA NA NA Other (organization-sustaining costs) 60,800 537,338 Total manufacturing overhead cost