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	$ 1,716,000
Cost of goods sold	1,227,820
Gross margin	488,180
Selling and administrative expenses	640,000
Net operating loss	$ (151,820)

Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,800 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:

3399 T599 Total Direct materials $ 400,999 $ 162,700 $ 563,699 Direct labor $ 129,299 $ 42,699 162,899 Manufacturing overhead 5912429 Cost of goods sold $ 1,227,829 Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 198, 770 90, 700 62, 200 152,900 Setups (setup hours) 140, 850 73 240 313 Product-sustaining (number of products) 100 , 800 1 1 2 Other (organization- sustaining costs) 61, 000 NA NA NA Total manufacturing overhead cost $ 501, 420