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	$	1,708,000
Cost of goods sold		1,231,358
Gross margin		476,642
Selling and administrative expenses		580,000
Net operating loss	$	(103,358)

Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,600 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	$	400,900	$	162,800	$	563,700
Direct labor	$	120,500	$	42,400		162,900
Manufacturing overhead						504,758
Cost of goods sold					$	1,231,358

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $53,000 and $108,000 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)

$

211,278

90,400

62,700

153,100

Setups (setup hours)

131,580

76

230

306

Product-sustaining (number of products)

101,600

1

1

2

Other (organization-sustaining costs)

60,300

NA

NA

NA

Total manufacturing overhead cost

$

504,758

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.)

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.)