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 $ 1.637,200 Cost of goods sold 1,203,182 Gross margin 434,018 Selling and administrative expennen 560.000 Net operating loss $ (125,982) Hi-Tek produced and sold 60,100 units of B300 at a price of $19 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. 7500 Total Direct materials $ 400,500 $ 162,600 $ 563,100 Direct labor $ 120,300 $ 42,400 162,700 Manufacturing overhead Cost of goods sold $ 1,203,182 1300 422.382 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $58,000 and $106,000 of the company's advertising expenses could be directly traced to 8300 and T500, respectively. The remainder of the selling and administrative expenses was organization sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below: Manufacturing Activity Activity Coat Pool and Activity Measure) overhead 360 7500 Total Machining machine-hours) $ 202,752 90, 700 62,900 153,600 Setups (setup hours) 111.930 73 200 273 Product-sustaining number of products) 102,000 1 1 2 Other (organization-sustaining costs) 60,700 NA NA NA Total manufacturing overhead cost $ 477,382 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. 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. (Round your Untermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin $ Required 1 Required 2 > 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 margin= be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 Product margin T500 Total $ Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculati- 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 $ 0 0 $ 0 Total cost $ 0 B300 T500 Total Amount % of Total Amount Amount % of Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs Total cost assigned to products Costs not assigned to products $ 0 $ 0 Total cost 0