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 Gross margin Selling and administrative expenses $ 1,648,000 1,217,666 430,334 580,000 Net operating loss $ (149,666) Hi-Tek produced and sold 60,000 units of 8300 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 $ 400,100 $ 120,100 T500 $ 162,400 $ 42,400 Total $562,500 162,500 492,666 $ 1,217,666 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 $105,000 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 $208,216 122,850 8300 90,500 Activity 1500 Total 62,600 73 200 101,000 1 1 153,100 273 2 60,600 NA NA NA $ 492,666 1. Compute the product margins for the 8300 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 team concluded that $57,000 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The AB 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 $ 208,216 122,850 Activity 8300 90,500 T500 Total 62,600 153,100 73 200 273 101,000 1 1 2 60,600 NA NA NA $ 492,666 1. Compute the product margins for the 8300 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 Total < Required 1 Required 3 > 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.) Traditional Cost System Amount B300 % of Amount Total cost assigned to products $ 0 Total cost T500 % of Total Amount $ 8300 T500 % of % of Total Amount Amount Total Amount Total Amount Amount Activity Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products $ 0 Total cost