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 $ 1,693,400 Cost of goods sold 1,221,900 Gross margin 471,500 Selling and administrative expenses 650,000 Net operating loss $ (178,500) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,600 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 8300 T500 Total $ 400,700 $162,200 $ 562,900 $ 120,400 $ 42,480 162,800 496,200 $1,221,900 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 $102,000 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: listrative 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) $ 205, 470 90,000 62,200 152,200 Setups (setup hours) 128, 330 73 240 313 Product-sustaining (number of products) 102,000 1 2 Other (organization-sustaining costs) 60,400 NA NA NA Total manufacturing overhead cost $ 496,280 1 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 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 Amount Traditional Cost System Traditional Cost System Cho % % % % Total cost assigned to products % $ % 0 $ 0 $ 0 Total cost $ 0 B300 T500 Total % of Total Amount % of Amount Amount Total Amount Activity-Based Costing System Direct costs: Amount % % *** Indirect costs % % % % % % % % Total cost assigned to products Costs not assigned to products: $ 0 $ 0 Total cost