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 Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,655,600 1,217,356 438, 244 570,000 $ (131,756) Hi-Tek produced and sold 60,400 units of 8300 at a price of $19 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: 3300 $ 400,600 $ 120,000 1500 $ 162,900 $ 42,900 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 563,500 163,700 490,156 $1,217,356 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $103,000 of the company's advertising expenses could be directly traced to 3300 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 Cont Pool and Activity Measure) Overhead 300 7500 Total Machining (machine-hours) $ 209,336 152,800 Setupe (setup hours) 119, 720 220 Product-sustaining (number of products) Other (organization-sustaining costs) 60,700 Total manufacturing overhead coat $ 490,156 100, 400 90,100 62.700 72 1 1 NA NA 292 2 NA Activity Cont Pool (and Activity Measure) Machining (machine-houra) Setupa (setup hours) Product-sustaining number of products) Other (organization-sustaining conta) Total manufacturing overhead cout Manufacturing Overhead $ 209,336 119,720 100,400 60, 700 $ 490,156 Activity B300 1500 Total 90,100 62,700 152,800 72 220 292 1 1 2 NA NA 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 the 6300 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 2 > 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 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.) 3300 T500 Total Product margin $ 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.) B300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products $ 0 0 $ 0 Total cost $ O B300 T500 Total % of % of % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products $ 0 $ 0 $ 0 Total cost $ 0 B300 T500 Total % of Amount % of Total Amount Total Amount Amount Amount Activity-Based Costing System Direct costs: % % R** % Indirect costs % 96 R* % % $ Total cost assigned to products Costs not assigned to products: 0 S 0 0 Total cost S