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	$	1,749,600
Cost of goods sold		1,226,696
Gross margin		522,904
Selling and administrative expenses		620,000
Net operating loss	$	(97,096)

Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,500 units of T500 at a price of $39 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	$	400,400	$	162,700	$	563,100
Direct labor	$	120,600	$	42,400		163,000
Manufacturing overhead						500,596
Cost of goods sold					$	1,226,696

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $60,000 and $103,000 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)	$	199,906	90,200	62,400	152,600
Setups (setup hours)		138,890	73	250	323
Product-sustaining (number of products)		100,800	1	1	2
Other (organization-sustaining costs)		61,000	NA	NA	NA
Total manufacturing overhead cost	$	500,596

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.)

	B300	T500	Total
Product margin			$0

2.	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	T500	Total
Product margin			$0