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: H1-Tek Manufacturing Inc. Income Statement Sales $ 1,765,500 Cost of goods sold 1,245,811 Gross margin 519,689 Selling and administrative expenses 620,000 Net operating loss $ (109,311) ok + Hi-Tek produced and sold 60,300 units of 8300 at a price of $21 per unit and 12,800 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 fines is shown below: B300 T5ee Total Direct materials $ 400,800 $ 162,900 $ 563,700 Direct labor $ 120,900 $ 42,100 163,000 Manufacturing overhead 519,111 Cost of goods sold $1,245,011 The company has created an activity based costing system to evaluate the profitability of its products. Hi Tek's ABC implementation team concluded that $57,000 and $105,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B388 T500 Total Machining machine-hours) $ 212,531 90,000 62,900 152,900 Setups (setup hours) 144,480 76 260 336 Product-sustaining (number of products) 101,480 2 Other (organization-sustaining costs) 60,700 NA NA NA Total manufacturing overhead cost $ 519,111 1 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 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 Required Required 2 > Prev 1 of 2 Next > Required: 1. Compute the product margins for the B300 and 1500 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 es 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 0 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.) 8300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products $ 0 $ 0 $ 0 Total cost $ 0 B300 T500 Total W of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % X % Indirect costs % % % % % 9 B300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products $ 0 $ $ 0 Total cost $ 0 T500 Total B300 % of Total Amount % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs % % *** % Indirect costs: % % % % % $ $ 0 Total cost assigned to products Costs not assigned to products Total cost $ 0 Prev 1 of 2 Next > S 0 Total cost T500 Total B300 % of Total Amount % of Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % *** Indirect costs ** % % % $ 0 0 Total cost assigned to products Costs not assigned to products: Total cost $ 0