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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

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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 $ 1,655,800 Cost of goods sold 1,225,736 Gross margin 430,064 Selling and administrative expenses 630,000 Net operating loss $ (199,936) Hi-Tek produced and sold 60,200 units of B300 at a price of $19 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: B300 T500 Total Direct materials $ 400,900 $ 162,700 $ 563,600 Direct labor $ 120,600 $ 42,200 162,800 Manufacturing overhead 499,336 Cost of goods sold $ 1,225,736 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $101,000 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 Cost Pool (and Activity Measure) Overhead T500 Total Machining machine-hours) $ 209,336 90,600 62,200 152,800 Setups (setup hours) 128,198 75 230 305 Product-sustaining number of products) 101,400 1 1 2 Other (organization-sustaining costs) 60,500 NA NA NA Total manufacturing overhead cost $ 499,336 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 0 $ $ $ 0 Total cost assigned to products $ 0 Total cost B300 T500 Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs $ 0 $ 0 0 Total cost assigned to products Costs not assigned to products: $ Total cost

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