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please help!! really stuck Sales Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for
please help!! really stuck
Sales Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts--the B300 and the T500. An absorption costing income statement for the most recent period is shown: Bi-Tak Manufacturing Incorporated Income Statement $ 1,635,300 Cost of goods sold 1,220,460 Gros margin 414,840 Selling and administrative expenses 620,000 Net operating loss $ (205,160) Hi-Tek produced and sold 60,000 units of 8300 at a price of $19 per unit and 12,700 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: 7500 Total Direct materials $ 401,000 $ 162,200 Direct labor 162,600 Manufacturing overhead 494,660 Cont of goods sold 61,220,460 The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $109,000 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: 00 $ 563,200 $ 120,100 $ 42,500 distributed the company's manufacturing overhead to four activities as shown below: Activity Cont Tool (and Activity Measure) Machining machine-houra) Setups (setup hours) Product-ustaining number of products) Other (organization-sustaining costa) Total manufacturing overhead cont Manufacturing Overhead $ 201,960 130.800 101,600 60,300 $ 494,660 3300 90,600 77 1 RA Activity T500 62,400 250 1 NA Total 153,000 327 2 NA 1 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. es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the 300 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.) 3300 T500 Total Product margin Required 2 > Step by Step Solution
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