please help with required 1-3! thanks
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: Hi-Tek Manufacturing Inc. Sales Income Statement $1,643,80 Cost of goods sold 1,225, 195 Gross margin 418,685 Selling and administrative expenses 610,000 Net operating loss (191,395) Hi-Tek produced and sold 60,200 units of 8300 at a price of $19 per unit and 12,500 units of T500 at a price of $40 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: 8300 Tsee Total Direct materials $ 480,200 $162, 100 $ 562,300 Direct labor $ 120,200 $ 42,100 162,380 Manufacturing overhead 500, 595 Cost of goods sold $1,225, 195 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $53,000 and $105,000 of the company's advertising expenses could be directly traced to 8300 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: Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead 8308 T500 Total Machining (machine-hours) $206,685 90,800 62,300 153, 100 Setups (setup hours) 132,010 77 230 307 Product -sustaining number of products) 101,800 Other (organization-sustaining costs) 60,100 NA NA NA Total manufacturing overhead cost $ 580,595 1 1 2. Required: 1. Compute the product margins for the 8300 and T500 under the company's traditional costing system. 2. Compute the product margins for 8300 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) Compute the product margins for the 8300 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 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 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.) 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 de places and Percentage answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) 3300 TSOO Total of % of Amount Amount Amount Traditional Cost System % RR X % Total cost signed to products Total cost 3300 T500 Total sof % of Total Amount Amount Total Amount Amount Amount Activity-Based Costing System Direct conta X Indirect costs Total cost assigned to products Customed to products
