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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: H-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12.700 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: The company has created on activity-based costing system to evaluate the profitability of its products. HI-Tek's ABC implementation team concluded that $55,000 and $100,000 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 activitles as shown below: The company has created an activity-based costing system to evaluate the profitabilty of its products. HI-Tek's ABC implementation tosm concluded that $55,000 and $100,000 of the company's advertising expenses could be directly traced to B300 and T500. respectively. The remainder of the selling and administratve expenses was organization-sustaining in nature. The ABC team also distributed the compary's manulacturing overhead to four activities as shown below: Required: 1. Compute the product margins for the 8300 and 500 under the company's traditional costing system. 2. Compute the product margins for B300 and Tsoo under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and octivity-based cost assignments. Complete this question by entering your answers in the tabs below. Computo the product rargins for the B300 and 1500 under the companr's trsditional costing 5ystem. (Round wour intermedate caleviations to 2 dedimal pilices and fout answers to the neerest whole dollar amount)

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