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 Hanufacturing Incorporated Income Statement Sales $ 1,635,300 Cost of goods sold 1,233,623 Gross margin 401,677 Selling and administrative expenses 550.000 Net operating loss $ (148,323) Hi-Tek produced and sold 60,000 units of 8300 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 8300 $ 400,400 $ 120,500 T500 $ 162,400 $ 42,400 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562,000 162,900 Sez, 923 $1,233,623 The company has created an activity based costing system to evaluate the profitability of its products. Ho Tek's ABC implementation team concluded that $52.000 and $103,000 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 Activity Cost Pool (and Activity Measure) Machining (nachine hours) Setups (setup hours) Product-sustaining (number of products) Other (organization sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 209,623 142,400 101,200 60, 700 5 507,923 B300 90,200 76 1 MA Activity T500 62,900 280 1 NA Total 153, 100 356 2 NA 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 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 1300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Total B300 243,200 T500 158,212 5 Product margin $ 401,412 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 dedmal places.) B300 1500 Total $ Product margin 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 $ 0 $ $ Total cost $ 0 B300 T500 Total Amount %o Total Amount 96 of Total Amount Amount Amount Activity Based Costing System Direct costs Indirect costs 5 0 Total cost assigned to products Costs not assigned to products Total cost 5