Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek Manufacturing Inc. Income Statement
Sales	$	1,706,000
Cost of goods sold		1,238,660
Gross margin		467,340
Selling and administrative expenses		580,000
Net operating loss	$	(112,660	)

Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,500 units of T500 at a price of $40 per unit. The companys 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 companys two product lines is shown below:

	B300		T500		Total
Direct materials	$	400,200	$	162,600	$	562,800
Direct labor	$	120,900	$	43,000		163,900
Manufacturing overhead						511,960
Cost of goods sold					$	1,238,660

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $53,000 and $106,000 of the companys 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 companys manufacturing overhead to four activities as shown below:

	Manufacturing Overhead			Activity
Activity Cost Pool (and Activity Measure)				B300	T500	Total
Machining (machine-hours)	$	199,160		90,400	62,800	153,200
Setups (setup hours)		152,100		78	260	338
Product-sustaining (number of products)		100,000		1	1	2
Other (organization-sustaining costs)		60,700		NA	NA	NA
Total manufacturing overhead cost	$	511,960

Required:

Compute the product margins for the B300 and T500 under the companys traditional costing system.

Compute the product margins for B300 and T500 under the activity-based costing system.

Prepare a quantitative comparison of the traditional and activity-based cost assignments. This answer should have the following format:

B300 T500 Total %of %of Amount Amount Amount Traditional Cost System Total cost assigned to products Total cost B300 T500 Total %of %of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products