Hi-Tek Manufacturing Inc. makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown below Hi-Tek Manufacturing Inc. Income Statement 1,774,100 1,228,490 545,610 620,000 (74,390) Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ $ Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,800 units of T500 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: Total $ 30 T500 S 162,200 42,000 $ 400,600 $ 120,100 Direct materials Direct labor Manufacturing overhead 562,800 162,100 503,590 $ 1,228,490 Cost of goods sold 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 $107,000 of the company's advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the sell ing 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 T500 Manufacturing Overhead S 208,760 0 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 Total 62,500 91,000 153,500 323 132,430 101,600 60,800 S 503,590 73 250 1 1 NA NA. NA Required 1. Compute the product margins for the B300 and T500 under the company's traditional costing system. (Do not round your overhead rate. Round your other intermediate and final answers to the nearest whole number.) Total B300 T500 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 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not round your overhead rate. Round your other intermediate calculations and final answers to the nearest whole number. Round your "Percentage" answer to 1 decimal place. (1.e..1234 should be entered as 12.3)) Total 500 % of % of Amount Amount Total Amount Total Amount Amount Traditional Cost System % Total cost assigned to products S 0 S Total cost S Total B300 T500 % of % of Total Amount Total Amount Amount Amount Amount Activity-Based Costing System Dirnct costs: Indirect costs Total cost assigned to products S 0 S S 0 0 Costs not assigned to products Tatal rort