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 Mesafacturing Inc. Income Statement Sales Cost of goods sold Grangin Selling wd adsinistrative expenses Het operating loss $ 1,709, 200 1.226.675 482.525 640.000 $(157.475) Hi-Tek produced and sold 60,500 units of B300 at a price of $20 per unit and 12,800 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 1500 Total Direct Materials $400,000 $102, 2005 562,200 Direct labor $120.300 42.000 163.100 Manufacturing overhead 501, 375 Coat of goods sold $ 1.226.675 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 and $109,000 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 Coat Pool (med activity Measure) Machining machine-horas) Setups (setup hours) Producttaining Camber of products) Other organisation-staining costa) Total facturing overhead cost Marutacturing Overhead $206. 415 133, 760 100, 800 60.400 $ 501, 375 activity B300 T800 90.700 62.200 74 230 1 1 NA NA Total 152.900 304 2 KA 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 the B300 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 Required Required 2 > Required 1 Required 2 Required 3 Compute the product margins for B300 and TS00 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Product margin Total 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 % of % of Amount Amount Amount Traditional Cost System 96 % % Total cost assigned to products Total cost B300 Total % of Total Amount T500 % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs Indirect costs S Total cost assigned to products Costs not assigned to products Total cost