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 $ 1,564,100 Cost of goods sold 1.218.520 Gross margin 425, se Selling and administrative expenses 630, cee Net operating loss $ (204,520) Hi-Tek produced and sold 60.000 units of B300 at a price of $19 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 dollars as the allocation base. Additional information relating to the company's two product lines is shown below. 3300 1500 Total Direct materials $400,500 $ 162,300 $ 562,800 Direct labor $ 120.000 $ 42, 162,900 Manufacturing overhead 492,820 Cost of goods sold $ 1,218,520 ces The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $110,000 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. Manufacturing Activity Activity Cost Pool and Activity Meason Overhead 3.300 Total Machining machine hours) $ 199,420 90,90 62,500 153,400 Setups (setup hours) 132,00 220 300 Product sustaining number of products) 100,600 1 other organization sustaining costs) 60.800 NA Total sanufacturing overhead coat 5.492,20 TSD 1 NA NA Required: 1. Compute the product margins for the 8300 and 7500 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 Compute the product margins for the B300 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