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 i Gross margin 05 Selling and administrative expenses Net operating loss $ 1,705,300 1,244,620 460,680 600,000 $ (139,320) Hi-Tek produced and sold 60,500 units of 8300 at a price of $20 per unit and 12,700 units of T500 at a price of $39 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 ces Direct labor Manufacturing overhead Cost of goods sold 7500 B300 $ 400,100 $ 162,100 $ 120,300 $ 42,800 Total $562,200 163,100 519,320 $1,244,620 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $110,000 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) Manufacturing Overhead B300 $206,550 90,800 Activity T500 62,200 Total 153,000 150,070 101,800 79 1 270 1 349 2 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $110,000 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. Setups (setup hours) Activity Cost Pool (and Activity Measure) Machining (machine-hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 206,550 150,070 8300 90,800 79 Activity T500 Total 62,200 270 153,000 349 101,800 1 1 2 60,900 NA NA NA $ 519,320 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