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: 35 points Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,643,000 1,264,910 378,090 630,000 $ (251,910) eBook Hint Print References Hi-Tek produced and sold 60,200 units of B300 at a price of $19 per unit and 12,800 units of T500 at a price of $39 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: B300 $ 400,300 $ 120,600 T500 $ 162,400 $ 42,900 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562,700 163,500 538, 710 $ 1,264,910 1 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $50,000 and $108,000 of the company's 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 company's manufacturing overhead to four activities as shown below: 35 points eBook 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 Overhead $ 212,670 165,440 100,000 60,600 $ 538,710 B300 90,800 76 1 NA Activity T500 Total 62,200 153,000 300 376 1 2 NA NA Hint Print References 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. J.Licpui cu quantiLULVE CUIrpanUIT VI LIC LI CUILIVITU nu uLLVILy-vascu USLUBIYICILJ. 1 Complete this question by entering your answers in the tabs below. 35 points Required 1 Required 2 Required 3 eBook Compute the product margins for the B300 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.) Hint B300 T500 Total Print Product margin $ 0 References Chec ulicpaicu quan ili LILILOLIVE LUMPULUI VI LIC L UILIITUI Onu UCLI Vily-vucu v UJJiyumnCHILJ. 1 Complete this question by entering your answers in the tabs below. 35 points Required 1 Required 2 Required 3 eBook 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.) Hint B300 T500 Total Print Product margin $ 0 References 1 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 dollar amounts.) 35 points B300 T500 Total % of % of eBook Amount Amount Amount Hint Traditional Cost System % % Print % % References % % Total cost assigned to products $ 0 $ 0 0 Total cost 0 B300 T500 Total % of % of Amount Total Amount Amount Total Amount Amount 1 Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % 35 points % Indirect costs: eBook % % Hint % % Print % % References $ 0 $ 0 0 Total cost assigned to products Costs not assigned to products: Total cost $ 0