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 Manutacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $1,214,000 1,222, 134 491,866 610.000 $ (118,134) Hi-Tek produced and sold 60,500 units of 8300 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 3300 1500 Total $ 400,200 $ 162,800 $ 563,000 $ 120,500 $ 42,500 153,000 46.134 $1,222,134 nces 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 8300 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 Coat Pool and notivity measure) Overhead 3300 7500 Total Machining (machine-hours) $ 200,954 91,000 62,400 133,400 Setupa (setup hours) 132,800 302 Product-sustaining number of products) 101,400 other organization-sustaining costs) 60.900 NA Total manufacturing overhead cout $ 496,134 230 72 1 NA 2 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 8300 and T500 under the activity-based costing system. (Negative product marg be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 Product margin T500 Total II $ 18,648 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decim places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total % of % of Amount Traditional Cost System Amount Amount es % % % % % Total cost assigned to products $ $ 0 $ 0 Total cost $ 0 B300 T500 Total % of Amount Total Amount % of Total Amount Amount Activity. Castinn Gu Amount 8300 T500 Total % of % of Total Amount Amount Total Amount Amount Amount Activity-Based Costing System Direct costs: % *** % Indirect costs ***** % % Total cost assigned to products Costs not assigned to products: ts $ 0 0 Total cost 0