Sales Hi-Tek Manufacturing Incorporated Cast of goods sold Gross margin Income Statement mints Selling and administrative expenses Net operating loss Skipped $ 1,755,900 1,240,990 514,910 560,000 $ (45,090) eBook 10 Ask Hi-Tek produced and sold 60,400 units of 8300 at a price of $21 per unit and 12,500 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 $ 8300 400, 300 T500 $ 120,400 $ 162,200 $42,700 Total $562,500 163,100 515,390 $1,240,990. The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 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. Print Activity Cost Pool (and Activity Measure) Machining (machine-hours) References Setups (setup hours). Other (organization-sustaining costs) Product-sustaining (number of products) Total manufacturing overhead cost Required: Manufacturing Overhead $214,900 8300 90,608 Activity 1500 62,900 Total 153,500 138,890 73 250 323 101,600 1 1 2 60,000 $515,390 NA NA NA 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. Cock my work t nces Complete this question by entering your answers in the tabs below. Required 1 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.) Product margin 8300 T500 Total 0 Required 2 > < Prev 5 of 6 Next > MacBook Pro Hint Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Ask 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.) Print Product margin eferences C aw B300 T500 Total $ 0 < Required 1 Required 3 > < Prev 5 of 6 Next > Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Required 3 Ask Print 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.) References Traditional Cost System Mc Graw Hill Amount B300 % of Amount T500 % of Total Amount Total cost assigned to products $ 0 $ S Total cost < Prev 5 of 6 Next > MacBook Pro S