HiTek Manufacturing, Incorporated, makes two types of industrial component partsthe 3300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales $ l,?61,988 Cost of goods sold 1,229,433 Gross margin 532,46? Selling and administrative expenses 618,888 Net operating loss $ (72,533) HiTek produced and sold 60,500 units of B300 at a price of $21 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: B396 T598 Tbtal Direct materials $ 488,288 $ 162,588 $ 562,788 Direct labor :3 126,688 $ 42,288 162,888 Manufacturing overhead 583,933 Cost of goods sold $ 1,229,433 The company has created an activitybased costing system to evaluate the profitability of its products. HiTek's ABC implementation team concluded that $58,000 and $107,000 of the company's advertising expenses could be directly traced to 8300 and T500, respectively. The remainder of the selling and administrative expenses was organizationsustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below: Manu facturing Activity Activity Cost Pool (and Mtivity Measure) Overhead 3366 T588 Total Machining (machinehour's} $ 263,623 95,908 62,238 153,108 Setups (setup hour's]I 139,816 ?1 ZYG 341 Product-sustaining (number of products) 163,496 1 1 2 Other (organization-sustaining costs} 68,186 NA NA NA Total manufacturing overhead cost $ 5933933 Required: 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 activitybased costing system. 3. Prepare a quantitative comparison of the traditional and activitybased 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. {Round your intermediate calculations to 2 decimal places and nal answers to the nearest whole dollar amount.) Product margin 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.) B300 T500 Total Product marginPrepare 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 % of % of Total Amount Amount Amount Traditional Cost System Total cost assigned to products Total costActivity-Based Costing System Direct c0513: Total cost assigned to products Costs not assigned to products: Total cost