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. Please help.

Save 1 Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the 1300 and the 1500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses $1,699,400 1/220,992 478,408 570.000 (91,592) Book Het operating loss Hint Print Hi-Tek produced and sold 60.400 units of 8300 at a price of $20 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 lines is shown below Ferences Direct materials Direct labor Manufacturing overhead Cost of goods sold 8300 TS Total $400, Bee 162,400 $ 56.),200 $120,200 $ 42,800 163.000 494,292 $1,220,992 The company has created an activity-based costing system to evaluate the profitability of its products, Hi-Teks ABC implementation team concluded that $56,000 and $107,000 of the company's advertising expenses could be directly traced to 1300 and 1500, 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-custaining (number of products) Other (organization-sustaining costs) Manufacturing Overhead $ 211,692 121,600 101,000 60,500 Activity B30 T500 Total 90,500 62,900 153,00 24 230 304 1 1 2 NA Prey 1 of 1 !!! Next w du: . O BI here to search The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $107.000 of the company's advertising expenses could be directly traced to 1300 and 1500, 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 costs) Total manufacturing overhead cost Manufacturing Overhead $ 211,692 121,600 101,000 60,500 $ 494,792 Total 153,480 Activity T500 62,900 230 8300 90,500 74 1 NA 384 1 2 NA NA Required: 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 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 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.) B300 T500 Total % of % of Prey 1 of 1 Next >