Saved 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: Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,699,400 Cost of goods sold 1,218,400 Gross margin 481,000 Selling and administrative expenses 630,000 Net operating loss $ (149,000) Hi-Tek produced and sold 60,400 units of B300 at a price of $20 per unit and 12,600 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: es Direct materials Direct labor Manufacturing overhead Cost of goods sold B300 T500 Total $ 400,700 $ 162,900 $ 563,600 $ 120,800 $ 42,200 163,000 491,800 $1,218,400 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $102,000 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: 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 Manufacturing Overhead $ 204,350 126,450 100,400 60,600 $ 491,800 Activity B300 T500 Total 90,400 62, 100 152.500 71 210 281 1 1 2 NA NA NA Total manufacturing overhead cost $ 491,800 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 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 Required 2 RA Naut Setups setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost 126,450 100,400 60,600 $ 491,800 71 1 NA 62, 100 210 1 NA 152,500 281 2 NA 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 B300 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 HW B300 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % % Total cost assigned to products Book Total cost Print Total B300 % of Total Amount T500 % of Total Amount Amount Amount Amount erences Activity-Based Costing System Direct costs: % % % % % % Indirect costs: % % % % % % Total cost assigned to products Costs not assigned to products: Total cost