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4 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: Hint HiTek Manufacturing Inc. Income statement Sales Coat of goods sold Grossargin Selling and administrative expenses Het operating loan $ 1,706,000 1.236320 469,680 600,000 $(130,320) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,600 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: 1300 1500 total Direct materials $ 400,6005162,000 563,400 $ 120,200 $ 42,200 162.400 Manufacturing overhead 510.520 cost of goods sold 51.236.320 Direct labor The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC Implementation team concluded that $58,000 and $106,000 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 Aiutat la Antti Activity TEAD Check my 4 Activity Control and Activity Measure) Machining machine-hours) Setups (setup hours) Product-sustaining number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 199,030 151,290 100,000 60,200 $ 510,520 Activity B300 T500 Total 90,600 62,500 153, 100 79 290 369 1 1 2 NA NA NA Hint Required: 1. Compute the product margins for the 8300 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: Required 2 Required 3 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.) Total Product margin 3300 T500 Required Required 2 > Check my work 4 Activity cont pool and Activity Measure) Machining (nachine-bours) Setups (setup hours) Product-sustaining (number of products other (organisationsustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 199,030 151,290 100,000 60,200 $ 510,520 Activity D300 7500 Total 90,600 62,500 153, 100 79 290 369 1 1 2 NA NA NA Hint 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 8300 and TSOO 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 Saved Help Save hapter 7 CI MI y MIMI MWILI B300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % Total cost assigned to products Total cost B300 T500 Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: % % % % % % Indirect costs % % %