M McGraw Hill X Question 3 - Chapter 7 - Home X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%2... Update : Chapter 7 - Homework i Saved Help Save & Exit Submit Check my work 3 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: 6.68 Hi-Tek Manufacturing Incorporated points Income Statement Sales $ 1, 653, 700 Cost of goods sold 1, 231, 648 Gross margin 422, 052 Selling and administrative expenses 600, 000 Book Net operating loss $ (177, 948) Hi-Tek produced and sold 60,300 units of B300 at a price of $19 per unit and 12,700 units of T500 at a price of $40 per unit. The Print 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: B300 T500 Total References Direct materials $ 400, 300 $ 163, 000 $ 563, 300 Direct labor $ 121, 000 $ 42 , 400 163, 400 Manufacturing overhead 504, 948 Cost of goods sold $ 1, 231, 648 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $101,000 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total Machining (machine-hours) $ 201, 828 90, 900 62, 000 152 , 900 Setups (setup hours) 142 , 120 73 250 323 Product-sustaining (number of products) 100 , 400 Other (organization-sustaining costs) 60, 600 NA NA NA Total manufacturing overhead cost $ 504, 948 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. Mc Graw Hillm McGraw Hill x 6 Question 3 - Chapter 7 - Hom X + v % I' W Mc Graw HillM McGraw Hill X Question 3 - Chapter 7 - Home X + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%2... Q U X Update : Chapter 7 - Homework i Saved Help Save & Exit Submit Check my work 3 places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts. ) B300 T500 % of % of Total Amount 6.68 Amount Amount points Traditional Cost System Book Total cost assigned to products $ 0 $ 0 $ Print Total cost $ B300 T500 % of References % of Total Amount Amount Total Total Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs Total cost assigned to products $ $ 0 Costs not assigned to products: Total cost $ 0 Mc Graw Hill