Hi-Tek Manufacturing, Incorporated, makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek Manufacturing Incorporated Income Statement
Sales	$ 1,755,300
Cost of goods sold	1,258,840
Gross margin	496,460
Selling and administrative expenses	630,000
Net operating loss	$ (133,540)

Hi-Tek produced and sold 60,000 units of B300 at a price of $21 per unit and 12,700 units of T500 at a price of $39 per unit. The companys 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 companys two product lines is shown below:

	B300	T500	Total
Direct materials	$ 400,200	$ 162,500	$ 562,700
Direct labor	$ 120,900	$ 42,600	163,500
Manufacturing overhead			532,640
Cost of goods sold			$ 1,258,840

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $57,000 and $108,000 of the companys 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 companys manufacturing overhead to four activities as shown below:

Activity Cost Pool (and Activity Measure)	Manufacturing Overhead	Activity
B300	T500	Total
Machining (machine-hours)	$ 208,080	90,500	62,500	153,000
Setups (setup hours)	162,360	79	290	369
Product-sustaining (number of products)	101,800	1	1	2
Other (organization-sustaining costs)	60,400	NA	NA	NA
Total manufacturing overhead cost	$ 532,640

Required:

1. Compute the product margins for the B300 and T500 under the companys traditional costing system. Compute the product margins for the B300 and T500 under the companys traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)

	B300	T500	Total
Product margin			$0

2. Compute the product margins for B300 and T500 under the activity-based costing system. 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.)

	B300	T500	Total
Product margin			$0

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 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.)

	B300	T500	Total Amount
	% of		% of
Amount		Amount
Traditional Cost System
Total cost assigned to products	$0		$0		$0
Total cost					$0
	B300	T500	Total Amount
	% of		% of
Amount	Total Amount	Amount	Total Amount
Activity-Based Costing System
Direct costs:
Indirect costs:
Total cost assigned to products	$0		$0		0
Costs not assigned to products:
Total cost					$0