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 period is shown: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,652,000 Cost of goods sold 1,229,589 Gross margin 422,111 Selling and administrative expenses 560.000 Net operating lans $(137,089) Hi-Tek produced and sold 60,000 units of B300 at a price of $19 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 Direct materials Direct labor Manufacturing overhead Cost of goods sold 5300 T500 Total $ 420,000 $162,7005 563,500 $ 120,000 $42.900 162,900 503,499 $1,229,889 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55.000 and $102.000 of the company's advertisino expenses could be directly traced to 8300 and T500 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 and $102,000 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 Activity Cost Pool and Activity Measure) Machining machine-hours) Setups (setup hours) Product -sustaining (number of products) Other (organization-sustaining costu) Total manufacturing overhead cost Hanufacturing Overhead $ 203,889 138,600 101,000 60,000 5.503,489 Activity 300 T500 Total 90,580 62,800 153,300 70 26e 330 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 1500 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 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 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.) B300 T500 Total Product margin Required Required 2 > $ 0 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculation places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products S 0 $ 0 5 Total cost $ 0 B300 T500 Total % of Total Amount Amount % of Total Amount Amount Amount Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % % % Indirect costs % % | | % % $ 0 $ 0 0 Total cost assigned to products Costs not assigned to products Total cost $ 0