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	$	1,653,700
Cost of goods sold		1,233,966
Gross margin		419,734
Selling and administrative expenses		630,000
Net operating loss	$	(210,266)

Hi-Tek produced and sold 60,300 units of B300 at a price of $19 per unit and 12,700 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	$	400,200	$	162,900	$	563,100
Direct labor	$	120,000	$	43,000		163,000
Manufacturing overhead						507,866
Cost of goods sold					$	1,233,966

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $54,000 and $101,000 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)	$	208,216	90,700	62,400	153,100
Setups (setup hours)		138,150	77	230	307
Product-sustaining (number of products)		101,400	1	1	2
Other (organization-sustaining costs)		60,100	NA	NA	NA
Total manufacturing overhead cost	$	507,866

Required

1.

Compute the product margins for the B300 and T500 under the companys traditional costing system. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollars.)

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.)

.	Prepare a quantitative comparison of the traditional and activity-based cost assignments. (PLEASE SHOW STEPS FOR FIRST TO PROBLEMS AS I AM TRYING TO LEARN THE CONCEPTS) Thank you