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 below:

Hi-Tek Manufacturing Inc. Income Statement
Sales	$	1,720,000
Cost of goods sold		1,247,636
Gross margin		472,364
Selling and administrative expenses		610,000
Net operating loss	$	(137,636)

Hi-Tek produced and sold 60,400 units of B300 at a price of $20 per unit and 12,800 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	$	400,100	$	162,900	$	563,000
Direct labor	$	120,700	$	42,100		162,800
Manufacturing overhead						521,836
Cost of goods sold					$	1,247,636

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $52,000 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		Activity
Activity Cost Pool (and Activity Measure)	Overhead		B300	T500	Total
Machining (machine-hours)	$	209,336	90,500	62,300	152,800
Setups (setup hours)		151,200	80	280	360
Product-sustaining (number of products)		101,200	1	1	2
Other (organization-sustaining costs)		60,100	NA	NA	NA
Total manufacturing overhead cost	$	521,836

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