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 $ 1,707,200 Cost of goods sold 1,224,950 Gross wangin 482,250 Selling and administrative expenses 570,000 Net operating loss $ (87,750) Hi-Tek produced and sold 60,400 units of B300 at a price of $20 per unit and 12,800 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: nces 8300 $ 400,000 $ 120,200 Direct materials Direct labor Manufacturing overhead Cost of goods sold 7500 $ 162,000 $ 42,300 Total $ 562,000 162,500 500,450 $1,224,950 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51,000 and $101,000 of the company's advertising expenses could be directly traced to $300 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 Machining machine-hours) $ 204,350 90,500 62,000 Setups (setup hours) 134,200 75 Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost $ 500,450 8300 TS00 Total 152,500 305 2 NA 101,800 230 1 NA 1 60,100 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51,000 and $101000 of the company's advertising expenses could be directly traced to 1300 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: Manufacturing Activity Cost Pool (and Activity Measure) Activity Overhead 8300 7500 Total Machining (sachine-hours) $ 204,350 90,500 62,000 152,500 Setups (setup hours) 134,200 75 230 305 Product-sustaining (number of products) 101,800 1 1 2 Other (organization sustaining costs) 60, 100 NA NA MA Total manufacturing overhead cost $ 500,450 Required: 1. Compute the product margins for the B300 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 tabs below. Required 1 Required 2 Required 3 Compute the product margins for the B300 and TS00 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin Red 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 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 1500 under the activity-based costing system. (Negative product margins shoul be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin Amount Amount Traditional Cost System Total cost assigned to products Total cost B300 T500 Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products