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Please help me with required 1 , 2 and 3 . Number 3 is a chart. Hi - Tek Manufacturing, Inc., makes two types of
Please help me with required and Number is a chart.
HiTek Manufacturing, Inc., makes two types of industrial component partsthe B and the T An absorption
costing income statement for the most recent period is shown:
HiTek produced and sold units of B at a price of $ per unit and units of T at a price of $
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:
The company has created an activitybased costing system to evaluate the profitability of its products. HiTek's ABC
implementation team concluded that $ and $ of the company's advertising expenses could be directly
traced to B and T 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:
Required:
Compute the product margins for the B and T under the company's traditional costing system.
Compute the product margins for B and T under the activitybased costing system.
Prepare a quantitative comparison of the traditional and activitybased cost assignments.
Complete this question by entering your answers in the tabs below.
Compute the product margins for the B and T under the company's traditional costing system. Round your
intermediate calculations to decimal places and final answers to the nearest whole dollar amount.
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