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 Ine Income Statement 3le Cost of goods sold 8elling and administrative expenses Net operating loss S 1,695, 500 1,255, 202 440,298 20,000 (179, 702) Hi-Tek produced and sold 60.400 units of B300 at a price of $20 per unit and 12,500 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 T500 Total S 400,700 162,700 563, 400 162,600 529,202 S1,255,202 Direct material Direct labor S 120,100 42,500 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 $51,000 and $109,000 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: activit I500 Manufacturing Activity Cost Pool (and Activity Measure) Setups (setup hours) Other (organization-austaining costs) Tot manufacturing overhead co t Total 90,100 62, 800 152,900 355 B300 211,002 156, 200 101, 800 60,200 529, 202 75 280 sustaining (number of NA NA NA Requlrec 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