Question has 3 parts.
Module 4 Homework Saved Help Save & Exit Submit Check my work 6 Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: 2.22 points Hi-Tek Manufacturing Inc. Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,697,300 1,226,488 470,812 Skipped 600,000 (129,188) eBook Hint Hi-Tek produced and sold 60,100 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: Print References Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 T500 Total $ 400,500 $ 162,800 $ 563,300 $ 120,000 $ 42,300 162,30 500,888 $ 1,226,488 Module 4 Homework Saved Help Save & Exit Submit Check my work 6 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $106,000 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: 2.22 points Skipped B300 Manufacturing Overhead $ 210,588 128,700 101,00 60,600 $ 500,888 Activity T500 62,100 210 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost 90,500 76 1 NA Total 152,600 286 2 NA eBook NA Hint Print References 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. Check my work 6 NA NA NA Other (organization-sustaining costs) Total manufacturing overhead cost 60,600 $ 500,888 2.22 points 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. Skipped Complete this question by entering your answers in the tabs below. eBook Hint Print Required 1 Required 2 Required 3 References Compute the product margins for the B300 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 S 0 Module 4 Homework Saved Help Save & Exit Submit Check my work 6 NA NA NA Other (organization-sustaining costs) Total manufacturing overhead cost 60,600 $ 500,888 2.22 points 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. Skipped Complete this question by entering your answers in the tabs below. eBook Hint Print Required 1 Required 2 Required 3 References 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.) B300 T500 Total Product margin Check my work 6 Required 1 Required 2 Required 3 2.22 points Skipped Prepare a quantitative comparison of the traditional and activity-based cost assignments. (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.) B300 T500 Total % of % of Amount Amount Amount Traditional Cost System % eBook % 460 % % Hint Total cost assigned to products $ 0 $ 0 S 0 Total cost $ 0 Print Total fo B300 % of Total Amount T500 % of Total Amount References Amount Amount Amount Activity-Based Costing System Direct costs Indirect costs: % el $ $ 0 0 Total cost assigned to products Costs not assigned to products: Total cost $
