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: Bi-Tek Manufacturing Inc. Income Statement Sales $1,714,000 Cost of goods sold 1,222,134 Gross margin 491,866 Selling and administrative expenses 610,000 Net operating 100 $ (118,134) Hi-Tek produced and sold 60,500 units of B300 at a price of $20 per unit and 12,600 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 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 B300 T500 Total $ 400,200 $ 162,800 $ 563,000 $ 120,500 $ 42,500 163,000 496,134 $1,222,134 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $108,000 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) Machining (machine-hours) $ 200,954 132,880 Product-sustaining number of products) 101,400 Other (organization-sustaining costs) Total manufacturing overhead coat Overhead Setups (setup hours) 3300 7500 91.000 62.400 72 230 1 1 NA NA Total 253, 400 302 2 NA 60.900 5.496,134 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 0 Roquired Required 2