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 Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,720,000 1,232,990 487,010 560.ee Hi-Tek produced and sold 60,400 units of B300 at a price of $20 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 overtiead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below. 8300 $ 400,600 $ 120,580 T 500 $ 162,200 5 42,500 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562,800 163, 100 Sez, e90 5 1,232,990 The company has created an activity based costing system to evaluate the profitability of its products Hi-Teks ABC implementation team concluded that $51.000 and 5108 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 B300 T500 90,609 62,800 Manufacturing Overhead $ 207,690 139,500 100, 200 60, 300 $ 507,090 Total 153,480 310 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 248 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 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 Manufacturing Overhead $ 207,090 139,500 100, 200 60,300 $ 507,090 B380 98,600 70 Activity T580 62,800 240 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 Total 153,400 310 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 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 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.) B300 T500 Total Amount Amount Amount Traditional Cost System Total cost assigned to products Total cost B300 Total of Amount Total Amount Amount Amount Activity-Based Costing System Direct costs Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost