Hi-Tek Manufacturing, Incorporated, makes two types of Industrial component parts--the B300 and the TS00. An absorption costing Income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statenent Sales $ 1,609,500 Coot of goods sold 1.230,309 Gross sargin 450, 691 Selling and administrative expono 560,000 set operating loan S (101,109) Hi-Tek produced and sold 60,100 units of 8300 at a price of $20 perunk and 12.500 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhoed rate and direct labor dolars as the allocation base. Additional information relating to the company's two product lines is shown below 3.300 1500 Total Direct materials 4000300 $ 162,600 Direct labor 120, 700 $ 42,700 101.400 Manufacturing overboad 50SOS Cost of goods sold 1,230.000 5562,900 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 $106,000 of the company's advertising expenses could be directly traced to 1300 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 Cout Tool (and Activity Measure) Machining machine-hours) Setups (notup hours) Product-containing number of producto other organization containing conta) Total manufacturing overhead coat Manufacturing Overhead $ 210, 569 132.440 100,000 60, 700 $504,509 3.300 90.900 71 1 NA Activity 1500 62.000 230 2 NA Total 153,700 301 2 NA 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 7500 under the activity based costing system. 3. Prepare a quantitative comparison of the traditional and activity based cost assignments