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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

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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: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1.757,400 Cost of goods sold 1,288,750 Gross margin 548,650 Selling and administrative expenses 570,000 Net operating loss $ (21,350) Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,700 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: 8380 T500 Total Direct materials $ 400,500 $ 162,200 $ 562,700 Direct labor $ 120,700 $ 42,880 163,500 Manufacturing overhead 482,550 Cost of goods sold $1,208,750 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51,000 and $105,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 198,25e 90,300 62,200 152,500 Setups (setup hours) 122,880 77 230 307 Product-sustaining (number of products) 101,400 1 2 Other (organization-sustaining costs) 60, 100 NA NA Total manufacturing overhead cost 5 482,550 1 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 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 0 Required 2 > 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 Plautduruny Overhead $ 198,250 122,800 101,400 60,100 $ 482,550 ALLAVAS B300 T500 Total 90,380 62,200 152,500 77 230 307 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 B300 and 1500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) T500 Total Product margin $ B300 B300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % e dele Total cost assigned to products $ 0 $ 0 $ 0 Total cost $ 0 B300 Total % of Total Amount T500 % of Total Amount Amount Amount Amount Activity-Based Costing System Direct costs: % % % % % % Indirect costs % % % % % % $ 0 $ 0 0 Total cost assigned to products Costs not assigned to products: Tatil at

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