Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the 1500. An absorption costing income statement for the most recent period is shown Hi-Tek Manufacturing Incorporated Income Statement Sales Cost of goods sold Selling and administrative expenses Net operating loss 51,714,000 1,216,464 477,536 570,000 Hi-Tek produced and sold 60.300 units of 8300 at a price of $20 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 anufacturing overhead Cost of goods sold $ 400,400 $ 120,400 1500 5162,900 $42,500 Total 5561,300 162,000 110,264 $1,736,464 The company has created an activity-based costing system to evaluate the profitability of its products. Hi Tek's ABC implementation team concluded that $54,000 and $110.000 of the company's advertising expenses could be directly traced to 8300 and 1500, respectively. The remainder of the selling and administrative expenses was organization sustaining in nature. The ABC team also dntributed the company's manufacturing overhead to four activities as shown below Activity Cat Paul (and Activity measure) Machining (each) Setups (setup hours) Activity Overhead $31,544 Total 152,700 147, 100,000 20 350 1 NA MA Titanfacturing warhead cost Required: 1 Compute the product margins for the 300 and 1500 under the company's traditional costing system 2. Compute the product margins for B300 and 1500 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 tab below 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 Net operating loss 5 1,714,000 1,236,464 477,536 570,000 $ (92,464) Hi-Tek produced and sold 60,300 units of 8300 at a price of $20 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 $ 400,400 $ 120,400 T500 $ 162,900 $42,500 Total $ 563,300 162,900 510,264 $1,236,464 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 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) Other (organization-sustaining costs) Total manufacturing overhead cost Required: Manufacturing Overhead $201,564 8300 90,400 Activity 1500 Total 147,000 100,800 70 62,300 280 152,700 350 1 2 60,900 $510,264 NA NA NA 1. Compute the product margins for the 8300 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 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. Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Product margin 8300 T500 Total Required 1 Required 2 > Required: 1. Compute the product margins for the B300 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 B300 and 1500 under the activity-based costing system. Note: Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Product margin 8300 1500 Total $ 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 thei nearest whole dollar amounts. Amount Traditional Cost System Total cost assigned to products S Total cost Amount Activity Based Costing System Direct cost Indred costs 13300 % of Amount $ 81300 % of Total Amount Amount Total cost assigned to products Casts not assigned to products $ S Tatal cost 1500 % of Total Amount 1500 % of Total Amount 3 S D Total Amount