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HI-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statement forits for the most recent period is shown below: HI-Tek

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HI-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statement forits for the most recent period is shown below: HI-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. Fhe company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct rabor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: The company created an activity.based costing system to evaluate the profitability of its products. HI-Tek's ABC implementation team concluded that $55,000 and $107,000 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: The company created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 and $107,000 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: Required: 1. Compute the product margins for B300 and T500 under the company's traditional costing system. 2 Compute the product margins for B300 and TS00 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. Compute the product margins for B300 and 1500 under the company's traditional costing system. Note: Round your intermediate calculations jo 2 decimal places and final answers to the nearest whole doliar amount

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