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 $1,759,800 Cost of goods sold 1, 228, 492 Gross margin 531,308 Selling and administrative 580,000 expenses Net operating loss $ (48,692) Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,600 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 shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 T500 Total $400,200 $162,100 $ 562,300 $120,200 $ 42,500 162,700 503,492 $1,228, 492 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 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: Activity Activity Cost Pool (and Manufacturing Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $212, 392 90,400 62,400 152,800 Setups (setup hours) 129,600 74 250 Product-sustaining (number of 100,800 1 1 2 products) Other (organization- 60,700 NA NA NA sustaining costs) Total manufacturing overhead $503,492 cost 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 Required Required 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.) Show less A B300 T500 Total Product $ 0 margin 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.) Show less B300T500 Total Product margin $ 0 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.) Show less B300 T 500 Total % of % of Amount Amount Amount Traditional Cost System olo % % Total cost assigned to products $ Total cost 0 Total B300 % of Total Amount Amount T500 % of Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: RE 131313 % | $ 0 Total cost assigned to products Costs not assigned to products: Total cost $ 0