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please help everything that's filled in is correct. I need all the blue outlined boxes. Thank you so much. Hi-Tek Manufacturing, Incorporated, makes two types
please help everything that's filled in is correct. I need all the blue outlined boxes. Thank you so much.
Hi-Tek Manufacturing, Incorporated, makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales Cost of goods sold sald Gross margin Selling and administrative expenses Net operating loss $ 1,755,900 1, 232,756 523,144 570,000 $ (46,856) Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,500 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 $ 400, 500 $ 120,400 Direct materials Direct labor Manufacturing overhead Cost of goods sold T500 $ 162,900 $ 42,800 Total $ 563,400 163,200 506,156 $ 1,232,756 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $107,000 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-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 204,216 139, 040 102,000 60,900 $ 506,156 B300 90, 100 76 1 NA Activity T500 62,300 240 1 NA Total 152,400 316 2 NA 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. 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 the B300 and T500 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 $ 374 086 S 149,058 $ 523,144 Required 2 > Required 1 Required 2 Required 3 Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $ 0 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 % of % of Total Amount Amount Amount $ 400,500 $ $ 563.400 Traditional Cost System Direct materials Direct labor Manufacturing overhead Total cost assigned to products Selling and administrative Total cost 120,400 373 414 894 314 162,900 42.800 132,742 338,442 $ $ $ 163,200 506,156 1.232.756 570 000 1,802.756 $ B300 T500 Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs Direct materials $ $ 162.900 $ 563.400 Direct labor 400.500 120,400 57,000 42,800 107,000 163,200 164,000 Advertising expense Indirect costs Machining Setups Product sustaining Total cost assigned to products Costs not assigned to products Selling and administrative Other $ 577,900 $ 312,700 890.600 $ 890 600 Total costStep by Step Solution
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