Problem 7.16 (Algo) Comparing Traditional and Actlvity-Based Product Margins [LO7-1, LO7-3, LO7.4, LO7-5] HI-Tek Manufacturing, Incorporated, makes two Industrlal component parts-B300 and T500. An absorptlon costing Income statement for the most recent perlod is shown below: HI-Tek produced and sold 60,100 unlts of B300 at a price of $19 per unlt 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: The company created an actlvity-based costing system to evaluate the profitability of its products. HI-Tek's ABC Implementation team concluded that $58,000 and $101,000 of the company's advertising expenses could be dlrectly traced to B300 and T500, respectively. The remainder of the selling and administratlve expenses was organlzation-sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four actlvitles as shown below: Required: 1. Compute the product margins for B300 and T500 under the company's traditional costing system. 2. Compute the product margins for B300 and T500 under the actlvity-based costing system. 3. Prepare a quantitatlve comparison of the traditional and actlvity-based cost assignments. 1. Compute the product margins for B300 and T500 under the company's traditional costing system. 2. Compute the product margins for B300 and T500 under the actlyty-based costing system. 3. Prepare a quantlatlive comparlson of the traditional and actlvity-based cost assignments. Complete this question by entering your answers in the tabs below. Compute the product margins for B300 and T500 under the company's traditional costing system. Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Required: 1. Compute the product margins for B300 and T500 under the company's traditional costing system. 2. Compute the product margins for B300 and T500 under the actlyity-based costing system. 3. Prepare a quantlatlive comparlson of the traditional and actlvity-based cost assignments. Complete this question by entering your answers in the tabs below. Compute the product margins for B300 and T500 under the activity-based costing system. Note: Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. 1. Compute the product margins for B300 and T500 under the company's traditional costing system. 2. Compute the product margins for B300 and T500 under the actlvity-based costing system. 3. Prepare a quantitative comparison of the traditional and actlvity-based cost assignments. Complete this question by entering your answers in the tabs below. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Note: 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