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: 8.33 Hi-Tek Manufacturing Inc. points Income Statement Sales $ 1, 766, 100 Skipped Cost of goods sold 1, 210,290 Gross margin 555, 810 Selling and administrative expenses 640,000 Net operating loss $ (84, 190) eBook Hi-Tek produced and sold 60,100 units of B300 at a price of $21 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 Hint dollars as the allocation base. Additional information relating to the company's two product lines is shown below: B300 T500 Total Direct materials $ 400, 000 $ 162, 200 $ 562, 200 Print Direct labor $ 120, 700 $ 42,000 162, 700 Manufacturing overhead 185, 390 Cost of goods sold $ 1, 210, 290 References The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 199 , 030 90, 600 62,500 153, 100 Setups (setup hours) 124,960 74 210 284 Product-sustaining (number of products) 100, 600 Other (organization-sustaining costs) 50,800 NA NA NA Total manufacturing overhead cost $ 485, 390 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 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 $ 0Required 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 $ 0Required 1 Required 2 Required 3 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 % % % Total cost assigned to products $ 0 $ 0 $ Total cost $ B300 T500 Total % of of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % Indirect costs: % % % Total cost assigned to products $ 0 $ 0 Costs not assigned to products: Total cost $ 0