Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts--the B300 and the 1500. An absorption costing income statement for the most recent period is shown HiTek Manufacturing Incorporated Income Statement Sales $ 1,768,200 Cost of goods sold 1,224,864 Gross margin 543,336 Selling and administrative expenses 640,000 Het operating love $(96,664) Hi-Tek produced and sold 60,200 units of 8300 at a price of $21 per unit and 12,600 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: 8300 T500 Total Direct materials $ 400, 500 $ 162,800 $ 563,300 Direct labor $ 120,900 $ 42,400 163,300 Manufacturing overhead 498,264 Cost of goods sold $ 1,224,864 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 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: Manufacturing Activity Activity Cont Pool (and Activity Measure) Overbead 1300 1500 Total Machining (machine-hours) $ 203,814 90,000 62,100 152,100 133,250 Setups (setup hours) 75 325 Product-sustaining (number of producto) 100,200 1 2 61,000 NA NA Other (organization-sustaining costs) Total manufacturing overhead cont $ 498,264 250 1 Required: 1. Compute the product margins for the 8300 and T500 under the company's traditional costing system 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 intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) T500 Total B300 256,605 Product margin $ 256,605 (Required 1 Required 2 > Required 1 Required 2 Required 3 Compute the product margins for B300 and T500 under the activity-based costing system. (Nega be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $ 0 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 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 $ B300 T500 Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Casting System Direct costs: TIGUI US Oyun $ 0 $ 0 Total cost assigned to products $ 0 $ 0 Total cost B300 T500 ook Total Amount % of Total Amount % of Total Amount Amount Amount int Activity-Based Costing System Direct costs: rint rences Indirect costs: $ 0 $ 0 0 Total cost assigned to products Costs not assigned to products: $ Total cost