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 1,712,000 1,267,830 444,170 570,000 (125,830) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,700 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 dollars as the allocation base. Additional information relating to the company's two product lines is shown below. B300 $ 480,100 $ 120,300 T500 $ 162,500 $ 42,200 $ Direct materials Direct labor Manufacturing overhead Cost of goods sold Total 562,660 162,50 542.7330 1,267,830 $ Help Save & Exit The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $106,000 of the company's advertising expenses could be directly traced to B300 and 1500, 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 Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 215,760 166,95 101,860 60,200 $ 542,730 Activity B30 T500 90,280 62,560 71 30 Total 152,700 371 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 points comprete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Print References Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 $281.813 T500 $ 162,357 Total $. 444,170 Product margin eBook Required 1 Required 2 Required 3 References 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.) B300T500 Total Product margin SO Helps Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) points 8300 500 Total % of Amount Amount Amount eBook Traditional Cost System Print References % Total cost assigned to products Total cost $ T500 T otal 8300 % of Total Amount Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: B300 1500 of Total Amount Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: 10 points eBook Indirect costs: Print References Total cost assigned to products Costs not assigned to products Total cost