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 period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales Cost of goods sold $ 1,655,600 1,215,580 Gross margin Selling and administrative expenses Net operating loss 440,020 610,000 $ (169,980) Hi-Tek produced and sold 60,400 units of B300 at a price of $19 per unit and 12,700 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. Direct materials Direct labor Manufacturing overhead Cost of goods sold 8300 $ 400,300 $ 120,200 T500 $ 162,900 $ 42,200 Total $ 563,200 162,400 489,980 $1,215,580 The company has 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 8300 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: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Required: Manufacturing Overhead 8300 Activity T500 Total $206,280 90,500 62,300 152,800 122,800 77 230 307 100,400 1 1 2 60,500 NA NA NA $489,980 1. Compute the product margins for the 8300 and T500 under the company's traditional costing system. 2. Compute the product margins for 8300 and T500 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. Required 11 Required 2 Required 3 Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 400,300 $ 162,900 $ 120,200 $ 42,200 $ 563,200 162,400 489,980 $ 1,215,580 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC impl team concluded that $55,000 and $107,000 of the company's advertising expenses could be directly traced to B300 and respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC te distributed the company's manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours). Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 206,280 122,800 B300 90,500 Activity T500 Total 62,300 152,800 77 230 307 100,400 1 1 2 60,500 $489,980 NA NA NA 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 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. Required 1 Required 2 Required 3 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 answers to the nearest whole dollar amount.) Product margin B300 T500 Total $ Direct materials Direct labor Manufacturing overhead. Cost of goods sold $ 400,300 $ 162,900 $ 120,200 $ 42,200 $ 563,200 162,400 489,980 $ 1,215,580 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC impleme team concluded that $55,000 and $107,000 of the company's advertising expenses could be directly traced to B300 and T5 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team distributed the company's manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Required: Manufacturing Overhead $ 206,280 122,800 8300 90,500 Activity T500 Total 62,300 152,800 77 230 307 100,400 1 1 2 60,500 $489,980 NA NA NA 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 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. Required 1 Required 2 Required 3 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 Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 deci places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) ok Traditional Cost System Amount B300 % of Amount T500 % of Total Amount nt Total cost assigned to products $ 0 $ 0 $ 0 Total cost $ 0 ences c raw Amount Activity-Based Costing System Direct costs Indirect costs: B300 T500 % of % of Total Amount Total Amount Amount Total Amount Total cost assigned to products Costs not assigned to products: $ 0 $ 0 Total cost $ 0