makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing Inc Income Statement $1,765,800 Sales Cost of goods sold 1,248,420 517,380 Gross margin 600,000 Selling and administrative expenses (82,620) Net operating loss Hi-Tek produced and sold 60,500 units of B300 at a price of $21 per unit and 12,700 units of T500 at a price of $39 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: B300 T500 Total Direct materials 400,300 162,800 563,100 Direct labor 120,000 42,100 162,100 Manufacturing overhead 523,220 Cost of goods sold 1,248,420 The company has created an activity-based costing system to evaluate the profitability of its products. Hi- expenses could be directly team concluded that $53,000 and $105,000 company's advertising expenses traced to respectively. The remainder of the selli and company's was organization-sustaining in The ABC team also distributed the manufacturing overhead as shown below