Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis intense - XX A..A. EEEE. - - Hi-Tek Manufacturing, Inc. makes two types of industrial component parts-the 3300 and the 1500. An absorption costing income statement for the most recent period is shown HI-Tek Manufacturing Inc. Income Statement Cost of goods sold Gross margin Selling and administrative expenses et operating loss 1,264,161 Hi-Tek produced and sold 60 200 units of B300 at a price of $20 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. T560 $ 460, 50 5162,100 $ 120,200 $ 42,00 Direct materials Direct labor manufacturing overhead Cost of goods sold Total $ 563,300 163, 528,063 $ 1,254,163 The company has created on activity based costing system to evaluate the profitability of its products. Hi Teks ABC implementation team concluded that $55.000 and $100.000 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. Activity Cost Pool (and Activity measure) Machining (machine hours) Setups (setup hours) Product-sustaining (number of products) Other (organization- staining costs) Total manufacturing overhead cost 156,01 len. $ 520,06) Required: 1 Compute the product margins for the 300 and T500 under the company's tramonal costing system 2. Compute the product marging for B300 and 500 under the activity based costing system 3. Prepare a quantitative comparison of the traditional and activity based on assignments (Cr)