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	$	1,753,800
Cost of goods sold		1,210,828
Gross margin		542,972
Selling and administrative expenses		640,000
Net operating loss	$	(97,028)

Hi-Tek produced and sold 60,300 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	$	401,000	$	163,000	$	564,000
Direct labor	$	120,700	$	42,900		163,600
Manufacturing overhead						483,228
Cost of goods sold					$	1,210,828

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $56,000 and $107,000 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)	$	201,828	90,400	62,500	152,900
Setups (setup hours)		120,400	71	230	301
Product-sustaining (number of products)		100,600	1	1	2
Other (organization-sustaining costs)		60,400	NA	NA	NA
Total manufacturing overhead cost	$	483,228

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	?	?	?

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	?	?	?

3.

Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3) and other answers to nearest whole dollar amounts.)

B300 T500 TOTAL

	Amout	Total Amount (% of)	Amount	Total Amount (% of)	Amount
Traditional cost system	-	-	-	-	-
?	?	?	?	?	?
?	?	?	?	?	?
?	?	?	?	?	?
Total cost assignment product	?	-	?	-	-
?	-	-	-	-	?
Total	-	-	-	-	?

B300 T500 TOTAL

	Amount	Total Amount (% of)	Amount	Total Amount (% of)	Amount
Activity Based Costing:	-	-	-	-	-
Direct cost:	-	-	-	-	-
?	?	?	?	?	?
?	?	?	?	?	?
?	?	?	?	?	?
Indirect Cost:	-	-	-	-	-
?	?	?	?	?	?
?	?	?	?	?	?
?	?	?	?	?	?
Total cost assigned to products	?	-	?	-	?
Costs not assigned to products:	-	-	-	-	-
?	-	-	-	-	?
?	-	-	-	-	?
Total Cost	-	-	-	-	?

*Answer the ? but the (-) are supposed to be blank**