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: Sales Hi-Tek Manufacturing Incorporated Cost of goods sold Gross margin Income Statement Selling and administrative expenses Net operating loss $ 1,645,900 1,248,914 396,986 580,000 $ (183,014) Hi-Tek produced and sold 60,100 units of B300 at a price of $19 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: Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 $ 400,300 $ 120,200 T500 $ 162,200 $ 42,200 Total $ 562,500 162,400 524,014 $ 1,248,914 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $102,000 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: Setups (setup hours) Activity Cost Pool (and Activity Measure) Machining (machine-hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Required: Manufacturing Overhead $ 209,884 152,930 100, 200 61,000 $ 524,014 B300 90,400 Activity T500 Total 62,800 73 300 1 1 153,200 373 2 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. The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $102,000 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 (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 209,884 152,930 100,200 B300 90,400 Activity T500 Total 62,800 73 1 300 1 153,200 373 2 61,000 NA NA $ 524,014 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.) Product margin B300 T500 Total $ 0 < Required 1 Required 2 > The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $102,000 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 (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 209,884 152,930 B300 90,400 Activity T500 Total 62,800 153,200 73 300 373 100,200 1 1 2 61,000 NA $ 524,014 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 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 decimal places.) Product margin B300 T500 Total $ 0 < Required 1 Required 3 > T-F---u-"IaaTV VVIFa:SIT VI HLS HuiHyHE "a ucivity bu-- v ---911"I"ILS, UEHa TVET HLSTH-MIE SEINSITIQIIS V - TCCIII-T places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) Traditional Cost System Total cost assigned to products Total cost Amount B300 % of Amount T500 % of Total Amount 0 0 0 $ 0 B300 T500 % of % of Total Amount Total Total Amount Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: $ 0 $ 0 0 Total cost $ 0 Prepare a quamunave companioon on the traditional and acarny poovu voor dooignmenor [hound your memmediate contro to a woman places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) Traditional Cost System Advertising expense Direct labor Direct materials Machining Amount B300 % of Amount T500 % of Total Amount 0 $ 0 $ 0 Manufacturing overhead B300 T500 % of % of Total Amount Amount Total Amount Total Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: $ 0 $ 0 0 Total cost $ 0 Total cost assigned to products Total cost 0 0 $ 0 $ 0 B300 T500 % of % of Total Amount Amount Total Amount Total Amount Amount Activity-Based Costing System Direct costs: Manufacturing overhead Other Product sustaining Selling and administrative Setups Costs not assigned to products: Total cost 0 $ 0 0 < Required 2 Required 3 $ 0