Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi-Tek Manufacturing, Inc, makes two types of industrial component parts-the 8300 and the T500. An absorption costing income statement for the most recent period is

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Hi-Tek Manufacturing, Inc, makes two types of industrial component parts-the 8300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek produced and sold 60,200 units of B300 at a price of $19 per unit and 12,700 units of 7500 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: 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 $103.000 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: Complete this question by entering your answers in the tabs below. Compute the product margins for the B300 and T500 under the company's traditional costing syst intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amoun Complete this question by entering your answers in the tabs below. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative pro be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Rrey 5 of 7 III Next > Required 2 Hi-Tek Manufacturing, Inc, makes two types of industrial component parts-the 8300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek produced and sold 60,200 units of B300 at a price of $19 per unit and 12,700 units of 7500 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: 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 $103.000 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: Complete this question by entering your answers in the tabs below. Compute the product margins for the B300 and T500 under the company's traditional costing syst intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amoun Complete this question by entering your answers in the tabs below. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative pro be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) Rrey 5 of 7 III Next > Required 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enterprise Compliance Risk Management An Essential Toolkit For Banks And Financial Services

Authors: Saloni Ramakrishna

1st Edition

1118550285, 978-1118550281

More Books

Students also viewed these Accounting questions

Question

Which of the following is NOT a relational operator? 1. =

Answered: 1 week ago