hi-tek manufacturing, inc., makes two types of industrial components

SDLU1P2018 A g for Ma my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to que Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the 8300 and the T500. An absorption costing income statement for the most recent period is shown: Manufacturing Inc. Sales Cost of goods sold s 1,764,000 1,217,287 546,713 550,00 Selling and administrative expenses Net operating loss $(3,287) Hi-Tek produced and sold 60,000 units of 8300 at a price of $21 per unit and 12,600 units of T500 at a price of $40 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 T500 $ 400,900 $162,400$ 563,300 B300 s121,000 $ 42,800 163,800 Direct labor Manufacturing overhead 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 $57,000 and $101,000 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