Problem 7-16 Comparing Traditional and Activity-Based Product Margins LO7-1, Lo7-3, LO7-4, LO7-5) Hi-Tek Manufacturing, Inc. makes two types of industrial component parts statement for the most recent period is shown: the B300 and the TS00. An abso ption costing income Hi-Tek Manufacturing Ine. Incone Statenent Sales Cost of goods sold Gross margin Selling and administrative expenses550-000 Net operating loss $ 1,699,300 1.218,822 480. 478 $(69,522) Hi-Tek produced and sold 60,200 units of B300 at a price of $20 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 Direct materials Direct labor Manufacturing overhead Cost of goods sold 400.600 $162,600$ 563,200 163,100 492-522 1,218,822 120,700 42,400 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $51,000 and $108,000 of the company's advertising expenses could be directly traced to B300 and T500