Hi-Tek Manufacturing Inc. makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown below:

Hi-Tek Manufacturing Inc. Income Statement
Sales	$	1,646,800
Cost of goods sold		1,252,084
Gross margin		394,716
Selling and administrative expenses		580,000
Net operating loss	$	(185,284)

Hi-Tek produced and sold 60,400 units of B300 at a price of $19 per unit and 12,800 units of T500 at a price of $39 per unit. The companys 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 companys two product lines is shown below:

	B300		T500		Total
Direct materials	$	400,600	$	162,700	$	563,300
Direct labor	$	120,400	$	42,700		163,100
Manufacturing overhead						525,684
Cost of goods sold					$	1,252,084

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $58,000 and $104,000 of the companys 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 companys manufacturing overhead to four activities as shown below:

	Manufacturing		Activity
Activity Cost Pool (and Activity Measure)	Overhead		B300	T500	Total
Machining (machine-hours)	$	208,624	90,700	62,700	153,400
Setups (setup hours)		155,760	74	280	354
Product-sustaining (number of products)		101,200	1	1	2
Other (organization-sustaining costs)		60,100	NA	NA	NA
Total manufacturing overhead cost	$	525,684

Required 1. 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 answer to the nearest whole dollars.) B300 T500 2. 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 ntermediate calculations to 2 decimal places.) B300 T500 T margin 3. Prepare a quantitative comparison ofthe traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answer to 1 decimal place. (ie..1234 should be entered as 12.3) and other answers to nearest whole dollar amounts.) B 300 I 1500 Total of of Total Amoun Total Amoun Amoun Traditional Cost Total cost assigned to products Total cost B 300 I 1500 Total of of Total Amoun Total Amoun Amoun Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to assigned to