Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts--the B300 and the T500 An absorption...

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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 Sales Hi-Tek Manufacturing Incorporated Income Statement Cost of goods sold Gross margin Selling and administrative expenses $1,633,300 1,211,482 421,818 640,000 Net operating loss $ (218,182) Hi-Tek produced and sold 60,100 units of B300 at a price of $19 per unit and 12.600 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. Direct labor Hanufacturing overhead Cost of goods sold 8300 $ 400,700 $ 120,400 1500 $ 162,700 $ 42,200 Total $ 563,400 162,600 485,482 $1,211,482 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $103,000 of the company's advertising expenses could be directly traced to B300 and 1500. 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 $ 204,022 120,560 100,400 0300 Activity 1500 Total 90,600 62,800 153,400 74 200 274 1 1 2 Other (organization-sustaining costs) 60,500 NA NA NA Total manufacturing overhead cost $ 485,482 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 Prepare a quantitative comparison of the traditional and activity-based cost assignments. Note: 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 8300 % of Amount T500 % of Total Amount Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. Note: 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 Total cost assigned to products Total cost Amount Amount Activity Based Costing System Direct costs Indirect cost Total cost assigned to products Costs not assigned to products Total cost B300 % of Amount 1500 % of Total Amount 8300 7500 % of Total Amount Amount % of Total Amount Total Amount 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 Sales Hi-Tek Manufacturing Incorporated Income Statement Cost of goods sold Gross margin Selling and administrative expenses $1,633,300 1,211,482 421,818 640,000 Net operating loss $ (218,182) Hi-Tek produced and sold 60,100 units of B300 at a price of $19 per unit and 12.600 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. Direct labor Hanufacturing overhead Cost of goods sold 8300 $ 400,700 $ 120,400 1500 $ 162,700 $ 42,200 Total $ 563,400 162,600 485,482 $1,211,482 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $103,000 of the company's advertising expenses could be directly traced to B300 and 1500. 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 $ 204,022 120,560 100,400 0300 Activity 1500 Total 90,600 62,800 153,400 74 200 274 1 1 2 Other (organization-sustaining costs) 60,500 NA NA NA Total manufacturing overhead cost $ 485,482 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 Prepare a quantitative comparison of the traditional and activity-based cost assignments. Note: 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 8300 % of Amount T500 % of Total Amount Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. Note: 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 Total cost assigned to products Total cost Amount Amount Activity Based Costing System Direct costs Indirect cost Total cost assigned to products Costs not assigned to products Total cost B300 % of Amount 1500 % of Total Amount 8300 7500 % of Total Amount Amount % of Total Amount Total Amount