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 tok Manufacturing Ine. Tacone Statement Sales $1,639,100 Cont of goods sold 1,254,668 Gross margin 384, 432 Selling and administrative expenses 590,000 Net operating 100 $ (205,56R) Hi-Tek produced and sold 60,200 units of 300 at a price of $19 per unit and 12,700 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 tate and direct labor dollars as the allocation base Additional information relating to the company's two product lines is shown below: Direct materials Direct labor Manufacturing overhead Cont of goods sold 300 1500 Total 1 400,000 $162,500 562,600 0120.500 42,700 163,200 528 868 51,254,668 Hi-Tek produced and sold 60,200 units of 300 at a price of $19 per unit and 12,700 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. 1300 T500 Total Direct materials $ 400,000 $162,600 $ 562,600 Direct labor $ 120,500 $ 42,700 163,200 Manufacturing overhead 528,868 Cost of goods sold $1,254,668 The company has created an activity based costing system to evaluate the profitability of its products. H.Tek's ABC implementation team concluded that $53,000 and $110,000 of the company's advertising expenses could be directly traced to $300 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 Motivity Nativity Cont pool and Mtivity Moore) Overhead T500 Total Machining machine hors) 6.211,960 90,800 62,800 153,600 Setupe setup hours) 155,000 300 380 Product-ustaining number of products) 100,200 other organisation-eustaining costs) 60.900 Total manufacturing overhead coat $520,960 100 80 1 NA 1 NA NA 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 Required 2 > Required 1 Required 2 Required 3 Compute the product margins for 8300 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.) 3300 T500 Total Product margin (Required 1 Required 3 > Traditional Cost System % X Total cost assigned to products Total cost B300 T500 Total % of % of Total Amount Amount Amount Amount Total Amount + Activity-Based Costing System Direct costs: % Indirect costs Prey 1 of 1 Next