please answer and show all work if you can
Hi-Tek Manufacturing, Inc., makes two types of Industrial component parts-the 8300 and the 1500. An absorption costing income statement for the most recent period is shown Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,701,400 Cost of goods sold 1,233,540 Gross margin 467,360 Selling and administrative expenses 560,000 Net operating loss $ (92,140) Hi-Tek produced and sold 60,500 units of B300 at a price of $20 per unit and 12,600 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: Direct materials Direct labor Manufacturing overhead Cost of trods sold B100 T500 Total 5400, 7005162,500 $ 563,200 $ 120,300 $ 42,200 162,500 507,840 $ 1,233,40 The company has created an activity based costing system to evaluate the profitability of its products. Hu Tek's ABC implementation team concluded that $55.000 and $104,000 of the company's advertising expenses could be directly traced to 1300 and 1500. respectively. The remainder of the selling and administrative expenses wis 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 Corganization wstaining costs) Total manufacturing weed cost Manufacturing Over $ 214,620 130,620 101.00 00 5507160 Activity 6.100 1500 0,100,00 153,00 20 311 1 1 NA Required: 1. Compute the product margins for the B300 and 1500 under the company's traditional costing system 2. Compute the product margins for B300 and 1500 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. Required 1 Required 2 Required 3 Compute the product margins for the B300 and 1500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin S 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. Required 1 Required 2 Required 3 Compute the product margins for 300 and 1500 under the activity based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places 3300 T500 Total Product margin Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity based cost assignments. (Round your intermediate calculations to 2 decimal places and Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total of Amount Amount Amount Traditional Cost Systom Direct materials rect labor Manufacturing overhead Total cost assigned to products Selling and administrative Total Cost $ 0 $ 0 S $ 0 B300 Total % of Total Amount T500 % of Total Amount Amount Amount Amount Activity Based Costing System Direct costs Direct materials 96 3 % 96 % % Direct labor Advertising expense indirect costs Machining Setups Product sustaining Total cost assigned to products Costs not assigned to products Selling and administrative Other Total cost % % % $ 0 $ 0 5
