H-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: Hi-Tek produced and sold 60,200 units of B300 at a price of $20 per unit and 12,700 unies of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwicle overhead rate and direct labor dollars as the allocation base. Additional information reiating to the company's two product lines is shown below: The company has created an activity-based costing system to evaluate the prolitobility of its products. H. Tek's ABC implementation team concluded that $56.000 and $103.000 of the company's advertising expenses could be directly traced to 8300 and 500 . respectively. The remuinder of the selling and odministrative expenses was organizatonssustaining f nature. The ABC team also distributed the company's manufacturing overtiead to four activities as shown beiow. Required 1. Compute the product margins for the 8300 and T500 under the conpary's tradeional costing system. 2. Compute the product margins for 3300 and T500 under the octhity-based cosung system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignoments