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-Tok Manufacturing Incorporated Income Statement Sales $ 1,774,300 Cost of goods sold 1, 254,035 Gross margin 520,265 Selling and administrative expenses 640,000 Net operating 100 $ (119,735) Hi-Tek produced and sold 60,300 units of B300 at a price of $21 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. 3300 $ 401,000 $ 120,300 T500 $ 162, 100 $ 42,200 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 563,100 162,500 528, 435 $ 1,254,035 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 $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: Manufacturing Activity Activity cost Pool (and Activity Measure) Overhead 8300 T500 Total Machining machine-hours) $ 205,335 90,000 62,100 152, 100 Setups (setup hours) 162,000 80 Product-sustaining (number of products) 100,400 Other (organization-sustaining costs) 60.700 NA Total manufacturing overhead cost $ 528,435 360 1 280 1 NA 2 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. 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 $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: 360 2 NA Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 7500 Total Machining machine-hours) $ 205,335 90,000 62,100 152, 100 Setups (netup hours) 162,000 80 280 Product-sustaining number of products) 100,400 1 2 Other (organization-sustaining costa) 60, 700 NA NA Total manufacturing overhead cost $ 528, 435 Required: 1. Compute the product margins for the 1300 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 1 Required 2 Required 3 Compute the product margins for the B300 and TSOO under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and find answers to the nearest whole dollar amount.) B300 T500 Total Product margin $ Required 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 $58,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead 3300 1500 Total Machining machine-hours) $ 205,335 90,000 62,100 152,100 Setups (setup hours) 162,000 80 280 360 Product-sustaining (number of products) 100,400 1 1 2 Other (organization-Bustaining costa) 60, 700 NA NA NA Total manufacturing overhead cost $ 528,435 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: Required 2 Required 3 Compute the product margins for B300 and T500 under the activity-based casting system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin er 70 VW % of % of Total Amount Amount Amount Traditional Cost System $ 0 Total cost assigned to products 0 $ $ $ 0 Total cost B300 T500 Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: $ 0 $ 0 0 Total cost assigned to products Costs not assigned to products: Total cost