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 Sa les Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,644.800 1,249,591 395,209 630,000 $ (234,791) Hi-Tek produced and sold 60.500 units of B300 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: Direct materials Direct Labor Manufacturing overhead Cost of goods sold B3.99 1599 Tatal 5400,400 $ 162,300 $ 562,700 S 120, 600 $ 42,30 162,900 523,991 $1,249,591 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 $109,000 of the company's advertising expenses could be directly traced to B300 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: 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 Activity Overhead B380 T500 Total $ 212,53190, 100 62,809 152,990 150, 968 76 290 101,400 60,000 NA NA NA $ 523,991 366 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 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.) T500 Total % of Amount Amount Amount Traditional Cost System Total cost assigned to products Total cost T500 Total B300 % of Total Amount Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost