People Window Help 96% i- Mon 11:37 AM Luz Mariela Robles Home other Boon : Apps For quick access, place your bookmarks here on the bookmarks bar. Import bookmarks now Chapter 7 Homework Assignment Help Save & ExitSubmit Check my work 7 Problem 7-16 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5 214 points Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the 8300 and the T500. An absorption costing income statement for the most recent period is shown -Tek Manufacturing Ino Inoone Statement 1.695,500 Sales Cost of goods sold Cross margin Selling and adminiatrative expenses590,000 Set operating loas 1-263,896 431,604 (158.396) Hi-Tek produced and sold 60,400 units of 8300 at a price of $20 per unit and 12,500 units of TS00 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: total 7500 400,700 162.200 562,900 1300 Direct materiala Direct labor Manufacturing overhead Cost of goods sold 120,900 42,500 163,400 1,263, 896 The company has created an activity-based costing system to evaluate the profitability of its products. Hi.Tek's ABC implementation team concluded that $51,000 and $103,000 of the company's advertising expenses could be directly traced to 8300 and T500