Hi-Tek Manufacturing Incorporated Income Statement
Sales	$ 1,707,200
Cost of goods sold	1,247,544
Gross margin	459,656
Selling and administrative expenses	580,000
Net operating loss	$ (120,344)

Hi-Tek produced and sold 60,400 units of B300 at a price of $20 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	$ 162,000	$ 562,600
Direct labor	$ 120,100	$ 42,800	162,900
Manufacturing overhead			522,044
Cost of goods sold			$ 1,247,544

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $57,000 and $108,000 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:

Activity Cost Pool (and Activity Measure)	Manufacturing Overhead	Activity
		B300	T500	Total
Machining (machine-hours)	$ 212,244	91,000	62,800	153,800
Setups (setup hours)	147,600	78	250	328
Product-sustaining (number of products)	101,400	1	1	2
Other (organization-sustaining costs)	60,800	NA	NA	NA
Total manufacturing overhead cost	$ 522,044

Required:

1. Compute the product margins for the B300 and T500 under the companys 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.

Compute the product margins for the B300 and T500 under the companys traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)

Product Margin	B300	T500	Total

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.)

Product Margin	B300	T500	Total

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.)