HI-Tek Manufacturing, Incorporated, makes two types of Industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent perlod is shown: Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,500 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: The company has created an actlvity-based costing system to evaluate the profitability of its products. HI-Tek's ABC Implementation team concluded that $55,000 and $101,000 of the company's advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administratlve expenses was organization-sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activitles as shown below. Required: 1. Compute the product margins for the B300 and T500 under the company's traditional costing system. 2. Compute the product margins for B300 and T500 under the actlvity-based costing system. 3. Prepare a quantitative comparison of the traditional and actlvity-based cost assignments