Hi-Tek Manufacturing, Inc. makes two types of industrial component parts--the B300 and the 1500 An absorption costing income statement for the most recent penod is shown Hi-Tek Manufacturing Inc. Income Statement Sales Coat of goods sold Gross margin Selling and administrative expenses Net operating loss $112.000 238.076 173,924 690.000 $ 166, 676) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,700 units of 1500 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 T500 Total Direct materials $100,000 $162,700 $ 562,700 Direct labor $ 120,000 $42,800 263, 600 Manutacturing overhead $11.976 Cost of goods sold $3,230,076 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $102,000 of the company's advertising expenses could be directly traced to 8300 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 REY Cort Pool and Activity Measure) Overhead T500 Machining machine-hour $ 208,896 90,800 62,300 153,600 Setups (setup hours) 140,280 260 334 Productsustaining (number of producto) 103,600 1 Ocher organization-sustaining costs) 63.000 MA NA Total manufacturing overhead coat S 511,776 1 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 Skipped The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implement team concluded that $56,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and T50 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team al distributed the company's manufacturing overhead to four activities as shown below. Hirit Activity Cost Pool and Activity Measure) Machining (machine-hours) Setups (setup houra) Produet-sustaining number of products) Other organization-sustaining costa) Total manufacturing overhead coat Manufacturing Overhead $ 208, 896 110,280 101,600 61,000 $ 511,776 Activity B300 T500 Total 90, 800 62,800 153,600 74 260 334 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 8300 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 $ 0 Product margin Required 2 > The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $102,000 of the company's advertising expenses could be directly traced to 1300 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 Activity Cost Pool (and Activity Measure) Machining machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Activity Overhead B300 T500 Total $ 208, 896 90, 800 62,800 153,600 140,280 74 260 334 101,600 1 2 61,000 NA NA $ 511,776 Required: 1. Compute the product margins for the B300 and 1500 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 8300 and TSOO 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 S 3 4 corpe un pruuci 12 3. Prepare a quantitative comparison of the traditional and activity based cost assigruments Complete this question by entering your answers in the tabs below. kloped 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 dolar amounts) 8350 T500 TAL Xo of Amount Amount Amount Traditional Cost System % % X % Total cost assigned to products 5 0 $ D 5 0 Total cost $ 8300 Total ol Total Amount T500 Do Amount Total Amount Amount Amount Activity Based Costing System Direct costs % Indirect costs % 5 $ otal cost assigned to products Costs not assigned to products * % % % % Total cost assigned to products 5 0 $ 0 Total cost 5 0 T500 Total B300 % of Total Amount Amount ol Total Amount Amount AMOUR Activity-Based Costing System Direct costs % % % RR Indirect costs % % % % % % Total cost assigned to products Costs not assigned to products Total cost $ 0