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 nts Sales Cost of goods sold Gross margin +Book Selling and administrative expenses Net operating lossi Hint Ask Print References $ 1,653,700 1,214,038 439,662 630,000 $ (190,338) Hi-Tek produced and sold 60,300 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 $ 400,200 $ 120,000 7500 $162,700 $ 42,900 Total $562,900 162,900 488,238 $ 1,214,038 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $58,000 and $104,000 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: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Manufacturing Overhead $211,278 0300 90,300 " Activity T500 62,800 300 Total 153,100 27 5 boints eBook Ask Print References The company has created an activity-based costing system to evaluate the profitability of its team concluded that $58,000 and $104,000 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. 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 Activity 8300 $211,278 90,300 T500 62,800 Total 153,100 114,660 73 200 273 101,000 1 1 2 60,500 NA NA NA $ 488,238 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. ces 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 nces 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 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 7 Required 1 Required 2 Required 3 15 points Save & Exit Submit Check my work 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.) Amount 8300 % of Amount T500 % of Total Amount eBook Traditional Cost System Hint Direct materials Direct labor Ask Manufacturing overhead Print Total cost assigned to products $ 0 0 $ References Selling and administrative Total cost Mc $ 0 8300 T500 % of % of Total Amount Amount Total Amount Amount Total Amount Activity-Based Costing System Direct costs: Direct materials Direct labor Advertising expense 7 Total cost mts eBook Ask Printi ferences Activity-Based Costing System Direct costs: Direct materials Direct labor Advertising expense Indirect costs Machining Setups Amount 8300 % of Total Amount Amount Product sustaining Total cost assigned to products $ 0 $ Costs not assigned to products: Selling and administrative Other Total cost T500 % of Total Amount Total Amount $ 0 Check my work