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 Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,695,300 1,211, 660 483,640 620,000 $ (136,360) Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit and 12.700 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: Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 T500 Total $400,000 $162, 600 $ 562,600 $ 120,300 $ 42,500 162, 800 486,260 $1,211, 660 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $108,000 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: Direct materials Direct labor Manufacturing overhead Cost of goods sold 3300 T500 Total $ 400,000 $162,600 $ 562,600 $120, 300 $ 42,500 162, 800 486,260 $1,211,660 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $108,000 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 Cost Pool (and Activity Measure) Overhead 8300 T500 Total Machining (machine-hours) $206, 280 90, 400 62,400 152,800 Setups (setup hours) 118, 080 210 288 Product-sustaining (number of products) 101,000 1 Other (organization-sustaining costs) 60, 900 NA NA Total manufacturing overhead cost $ 486,260 78 1 2 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. 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 300 and TSOO 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 FINNYIRE Required 2 > 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 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.) B300 T500 Total Product margin Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 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 % % % Total cost assigned to products Total cost B300 T500 Total % of % of Total Amount Amount Total Amount Amount Amount Activity-Based Costing System Direct nete BE DI A 8 MOYI T500 Total B300 % of Total Amount % of Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % % %6 % Indirect costs %6 96 RE % Total cost assigned to products Costs not assigned to products: Total cost