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:
Complete this question by entering your answers in the tabs below. 1 dollars as the allocation base. Additional information relating to the company's two product lines is shown below. 8300 T500 Total Direct materials $400,500 $ 162,200 $ 562,709 Direct labor $ 120,600 $ 42,700 163, 303 Manufacturing overhead 525,194 Cost of goods sold $ 1,251,194 Required 1 1 Required 2 Required 3 8.33 points 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 Book % of % of Amount Amount Amount Hint The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51.000 and $106,000 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 8300 T500 Total Machining (machine-hours) $207,944 98,108 62,880 152,900 Setups (setup hours) 156,15 77 Product-sustaining number of products) 100,400 1 2 Other (organization-sustaining costs) 60,700 NA Total manufacturing overhead cost $ 525,194 Traditional Cost System 96 % 06 270 Print 96 1 NA 347 MA 96 % References Total cost assigned to products Total cost 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. Prepare a quantitative comparison of the traditional and activity-based cost assignments. B300 T500 Total % of % of Complete this question by entering your answers in the tabs below. Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Required 1 Required 2 Required 3 % 96 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.) % % 96 B300 T500 Total % Product margin Indirect costs % % Hectos Required 2 > 96 96 % % Complete this question by entering your answers in the tabs below. Total cost assigned to products Costs not assigned to products: Required 1 Required 2 Required 3 Total cost 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.) Complete this question by entering your answers in the tabs below. 1 dollars as the allocation base. Additional information relating to the company's two product lines is shown below. 8300 T500 Total Direct materials $400,500 $ 162,200 $ 562,709 Direct labor $ 120,600 $ 42,700 163, 303 Manufacturing overhead 525,194 Cost of goods sold $ 1,251,194 Required 1 1 Required 2 Required 3 8.33 points 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 Book % of % of Amount Amount Amount Hint The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51.000 and $106,000 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 8300 T500 Total Machining (machine-hours) $207,944 98,108 62,880 152,900 Setups (setup hours) 156,15 77 Product-sustaining number of products) 100,400 1 2 Other (organization-sustaining costs) 60,700 NA Total manufacturing overhead cost $ 525,194 Traditional Cost System 96 % 06 270 Print 96 1 NA 347 MA 96 % References Total cost assigned to products Total cost 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. Prepare a quantitative comparison of the traditional and activity-based cost assignments. B300 T500 Total % of % of Complete this question by entering your answers in the tabs below. Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Required 1 Required 2 Required 3 % 96 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.) % % 96 B300 T500 Total % Product margin Indirect costs % % Hectos Required 2 > 96 96 % % Complete this question by entering your answers in the tabs below. Total cost assigned to products Costs not assigned to products: Required 1 Required 2 Required 3 Total cost 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.)
