Hi-Tek 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 5 1,101,300 Cost of goods sold 1,225,640 Gross margin 415.660 Selling and administrative expenses 590' 000 Net operating loss 3 (114,340) 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 $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: 3300 '1'500 l'otal Direct materials $ 400,100 $ 162,200 $ 562,300 Direct labor s 120,400 3 42,200 162,600 Manufacturing overhead 500,740 Cost of goods sold 5 1,225,640 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $104,000 of the com pany's advertising expenses could be directly traced to 3300 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead 5300 T500 Total Machining (machine-hours) S 207,160 90,700 62,900 153,600 Setups (setup hours} 131,580 76 230 306 Product-sustaining [number of products] 101,200 1 1 2 other (organizationsustaining caste] 60,600 rut NA NA Total manufacturing overhead cost $ 505:7\") Required: 'I. Compute the product margins for the 3300 and T500 under the company's traditional costing system. 2. Compute the product margins for 3300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparlson of the traditional and activity-based cost assignments. Complete thls 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.) Required 2 ) 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 $ 1, 701, 300 Cost of goods sold 1, 225, 640 Gross margin 475, 660 Selling and administrative expenses 590, 000 Net operating loss (114, 340) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,700 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: B300 T500 Total Direct materials $ 400, 100 $ 162, 200 $ 562, 300 Direct labor $ 120, 400 $ 42,200 162, 600 Manufacturing overhead 500, 740 Cost of goods sold $ 1, 225, 640 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $104,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours ) 207, 360 10 , 700 2,900 153,600 Setups ( setup hours) 131, 580 76 230 306 Product-sustaining (number of products) 101, 200 Other (organization-sustaining costs) 60, 600 NA NA Total manufacturing overhead cost $ 500, 740 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 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. 3300 T500 Total Product margin Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the 8300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Incor Income Statement Sales $ 1, 701, 300 Cost of goods sold 1, 225, 640 Gross margin Selling and administrative expenses 590, 000 Net operating loss $ (114,340) 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 $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. B300 T500 Total Direct materials $ 400, 100 $ 162,20 562, 300 Direct labor $ 120, 400 $ 42,200 162, 600 Manufacturing overhead 500, 740 Cost of goods sold $ 1,225,640 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $104,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure] overhead B300 Total Machining (mach: $ 207,360 90,700 62,900 153, 600 Setups (setup hours) 131,580 306 roduct-sustaining ( number of products) 101 , 20 Other (organization-sustaining costs) 60,600 Total manufacturing overhead cost $ 500,740 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. (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 cost B300 T500 % of % of Total Amount Amount Total Total Amount Amount Amount Activity-Based Costing System |Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost