Hi-Tek Manufacturing, Incorporated, makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales $ 1,649,500 Cost of goods sold 1,223,884 Gross margin 425,616 Selling and administrative expenses 590,000 Net operating loss $ (164,384) Hi-Tek produced and sold 60,500 units of B300 at a price of $19 per unit and 12,500 units of T500 at a price of $40 per unit. The companys 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 companys two product lines is shown below: B300 T500 To

Activity Cost Pool (and Activity Measure)	Manufacturing Overhead	Activity
B300	T500	Total
Machining (machine-hours)	$ 203,224	90,600	62,200	152,800
Setups (setup hours)	133,660	76	250	326
Product-sustaining (number of products)	100,800	1	1	2
Other (organization-sustaining costs)	60,700	NA	NA	NA
Total manufacturing overhead cost	$ 498,384

Required:

1. Compute the product margins for the B300 and T500 under the companys 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.

Compute the product margins for the B300 and T500 under the company's tra intermediate calculations to 2 decimal places and final answers to the nearest Compute the product margins for B300 and T500 under the activity-based cos be indicated by a minus sign. Round your intermediate calculations to 2 decim Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calch places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.)