Hi-Tek Manutecturing, Inc, makes two types of industrial component parts the B300 and the 1500. An absorption costing income statement for the most recent period is shown Riek Manufacturing Inc Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses et operating loss $ 1,778,300 1,229,450 548.850 650.000 5 (101.150) Hi-Tek produced and sold 60,300 units of 8300 at a price of S21 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 3.300 Total Direct terisis $ 400,7005162,00 563.000 Direct labor $ 120,600 42.700 163,00 Manufacturing overband 502550 Cost of goods sold 1500 The company has created an activity based costing system to evaluate the profitability of its products. HiTeks ABC implementation team concluded that S54000 and 5108,000 of the company s advertising expenses could be directly traced to 3300 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: distributed the company's manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup bours) Product-sustaining number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 200, 430 140,220 101,600 60,300 $ 582,550 300 90,300 72 1 MA Activity T500 Total 62,700 153,000 270 342 1 2 NA 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 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 Required Compute the product margins for the B200 and T500 under the company's traditional conting system (Round youn Intermediate calculations to 2 decimal places and final answers to the rest wild an amount B300 T500 Total Product margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Compute the product margins for 8300 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.) B300 1500 Total Product margin 13 Next > to search o a Complete this question by entering your answers in the tabs below. Required 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) B360 T500 Total of 9.01 Amount Amount Traditional Cost System Amount 2 96 % Total cost signed to products Tocou