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 Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,710,000 1,254,560 455,440 630,000 (174,560) $ Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700 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: B300 $ 400,300 $ 120,600 1500 $ 162,500 $ 42,000 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562,800 162,600 529,160 $ 1,254,560 B300 $ 400,300 $ 120,600 T500 $ 162,500 $ 42,000 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562,800 162,600 529,160 $ 1,254,560 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation ceam concluded that $57,000 and $109,000 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 listributed the company's manufacturing overhead to four activities as shown below: Manufacturing Overhead $ 209,610 156,950 101,800 60,800 $ 529,160 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Activity B300 T500 90,800 62,200 75 290 1 NA NA Total 153,000 365 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. B. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 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 T 500 Total Product margin $ 0 Required 1 Required 2 Required 3 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 T 500 Total Product margin B300 T500 Total % of % of Amount Amount Amount Traditional Cost System Regular Ship Total cost assigned to products Total cost Total B300 % of Total Amount T500 % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: " Total cost assigned to products Total cost Total B300 % of Total Amount T500 % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: % $ 0 $ 0 Total cost assigned to products Costs not assigned to products: Total cost