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 $ 1,701,200 Cost of goods sold 1,239,072 Gross margin 462,128 Selling and administrative expenses 550,000 Net operating loss (87,872) $ Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12.800 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. B3ee T500 Total Direct materials $ 480,300 $ 162,800 $ 563, 100 Direct labor $ 120,820 $ 42,300 163, 100 Manufacturing overhead 512,872 Cost of goods sold $ 1,239,272 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53.000 and $109,000 of the company's advertising expenses could be directly traced to 1300 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 Total Machining (machine-hours) $ 201,432 90, 280 62,4ee 152,680 Setups (setup hours) 149,940 Product-sustaining (number of products) 181,400 Other (organization-sustaining costs) NA NA Total manufacturing overhead cost $ 512,872 T5ee 77 1 NA 280 1 357 2 60, 10e 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