Hi-Tek produced and sold 60,400 units of B 300 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 an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $108,000 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: 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. \begin{tabular}{|c|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ B300 } & \multicolumn{2}{|c|}{ T500 } & \multirow{3}{*}{ Total Amount } \\ \hline & & % of & & % of & \\ \hline & Amount & & Amount & & \\ \hline \multicolumn{6}{|l|}{ Traditional Cost System } \\ \hline \multicolumn{6}{|l|}{x2+2} \\ \hline & & & & & \\ \hline & & & & & \\ \hline \multicolumn{6}{|l|}{ Total cost assigned to products } \\ \hline L & & & & & \\ \hline \multicolumn{6}{|l|}{ Total cost } \\ \hline \multirow[t]{3}{*}{ } & \multicolumn{2}{|c|}{8300} & \multicolumn{2}{|c|}{ T500 } & \multirow{3}{*}{ Total Amount } \\ \hline & & % of & & % of & \\ \hline & Amount & \begin{tabular}{l} Total \\ Amount \end{tabular} & Amount & \begin{tabular}{l} Total \\ Amount \end{tabular} & \\ \hline Activity-Based Costing System & & & + & & \\ \hline \multicolumn{6}{|l|}{ Direct costs: } \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \multicolumn{6}{|l|}{ Indirect costs: } \\ \hline & & & + & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline Total cost assigned to products & & & & z & : \\ \hline \multicolumn{6}{|l|}{ Costs not assigned to products: } \\ \hline & + & & & & \\ \hline & & & & +1 & \\ \hline Total cost & & & & & \\ \hline \end{tabular}