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 $ 1.778,300 Cost of goods sold 1,239, 251 Gross margin 539, 049 Selling and administrative expenses 570,000 Net operating loss (30,951) Hi-Tek produced and sold 60,300 units of 8300 at a price of $21 per unit and 12,800 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 dollors as the allocation base. Additional information relating to the company's two product lines is shown below: B300 T500 Total Direct materials $ 400,800 $ 162,000 $ 562,800 Direct labor $ 120,200 $ 42,000 162,200 Manufacturing overhead 514,251 Cost of goods sold $1,239, 251 The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51,000 and $106,000 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 T500 Total Machining (machine-hours) 5 208,651 90,200 62,100 152,300 Setups (setup hours) 143,500 350 Product-sustaining number of products) 101,400 1 1 Other (organization-sustaining costs) 60,700 Total manufacturing overhead cost $514,251 80 270 2. NA NA NA 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 8300 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 Complete this question by entering your answers in the tabs below. Required 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 htyureo 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 Traditional Cost System Amount % % % % % % Total cost assigned to products Total cost B300 T500 Total % of Total Amount Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs: % % % % % Indirect costs: % % % % % % Total cost assigned to products Costs not assigned to products: Total cost