Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown:

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 perlod is shown: Hi-Tek Manufacturing Inc Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,695,480 1, 228,648 466,752 588,98e $(113,248) Hl-Tek produced and sold 60,200 units of B300 at a price of $20 per unlt 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 Total B308 T588 Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 48e,68e 162,48 $563,88e 162,88e 582,848 $ 1,228,648 $ 12e,80 42,988 The company has created an activity-based costing system to evaluate the profitability of its products. Hl-Tek's ABC Implementation team concluded that $52,000 and $109,000 of the company's advertising expenses could be directly traced to B300 and T500, respectively. The remalnder of the selling and administrative expenses was organization-sustalning In nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below Activit T500 98,3 62,99e 153,280 Manufacturing Overhead $ 212,948 127,68e 181,688 Total 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 79 248 319 60,78e NA NA NA $502,848 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 marglns 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 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.) Produat margin Required2 Complete this question by entering your answers in the tabs below. Compute the product margins for 8300 and T500 under the activity-based costing system. (Negative product margins should ba indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Product margin Required 1 %of %of Traditionsl Cost System Total cost assigned to products Total cost B300 T500 Total %of of Amount Total Amount Activity-Besed Costing System Direct costs: Indirect costs Total cost assigned to produsts Costs not assigned to produsts Total cos Required 2