Shelly,

Please find the attached question. How long do you need to answer it? I also need an explanation please. Thanks.

' Gimme File Edit View History Bookmarks People Window Help 61.9% 1"?\" LI-l '5) $ 'g' 10) 5456-: 3311:24PM FmNSnmm-rl Q ' 9 ' /GW ' W . _ ' tmmwmym Chapter Seven ( C IE) ezta.mheducation.oom/hm.tpx 555 Anna 6 University Search |... D 0min: Registration e In Defense of Food... In. J2 1043 vw Gait... \":9 Meeaagl Minder w... a MOTEGI RACING... Q In Defense of Food... D Grad mun-ma hula... Problem 7-16 Comparing Traditional and ActivityBased Product Margins [LO7-1, LOT-3, L074, LOT-5] Hi-'Feit Manufacturing lno. makes two types of industrial component partsthe 3300 end the T500. An absorption ousting lnmme statement for the most recent period ls shown below: Hi-Tek Monufaduring Inc. IncomI Statement Sales $1,695,500 (2061 ngoods sold 1,255,952 Gross mangln 438,538 Selling and administrative expense 630,000 Net operetlrlg loss 5 (191.462) Hi-Tek produced and sold 60,400 units ol 5300 ata price of $20 per unit and 12,500 units at T500 at a price of $39 per unit. The company's tradltienel cost system allocates manuleomring overhead to products using a plantwide overhIad rate and direct labor dollars as the attention basI. Additional information relating to the company's two product lines ls shown bIlUw: _ 3300 T500 Total Direct materials 3 400,100 $ 162,000 $ 562,100 Direct labor 3 120,100 $ 42,800 162,900 Manufacturing overhead 531,952 Coed of goods sold $ 1,256,962 The company has created an activity-based costlng system to evaluate the protability ofits products. Hi- Tek's ABC implementelion beam concluded Ihal $53,000 and $104,000 of the company's advertia'ng expenses could be directty traced to 3300 and T500. mpectively. The remainder of the selling and administlative expenses was organization-sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activitles as shown below: ' Ohmme File Edit View History Bookmarks People Window Help ( - G |ezta.mheducation.oom/hm.tpx Apps @ Unlvereity Search I... D OnllnI egietretion e In Defense of Food... .- JZ 10-13 W Gall... '3 MeeeeaI Mlnder W... a MOTEGI RACING... Q In Defense of Food... I] Grad etudInte hull... may _ _ Mmedurirg Adivity Out Pool (Ind Activity Manure) Owed-lead 33m T500 Total Mad'llning (machine-hours) $ 209.062 90300 62500 152500 Setups (sell: hours) 161,100 TB 280 358 Productiwstelninp (number of products) 101,000 1 1 2 Other [organization-sustaining costs) 50.800 NA NA NA Total manufacturing overhead cost 5 531.962 Required 1. Compute the product margins for the 3-300 and T500 under the company's traditional costing system. (Round your inhn'nedim calculations to 2 decimal piece: and final answer to the nearest whole dollars.) I Product margin S 0 2. Compute the prod uct margins for 3300 and T500 underthe eotJvilybased casting system. [Negative product margin: should bI Indicated by l min: lion. Round your intermediate calculations In 2 decimal plum.) Product margin Snug\") $3 1) 3456le 3311:24PM FamNSl'Iamm-rl Q 55 ' Chroma File Edi'l Vlaw History Bookmarks Paapla Winduw Help ( - G leztamhaduca1iomoomfhmtpx Anna O Unlvarally Search I... D Onllnu sgialraon e In Defense of Fund... ll.- JZ 10-13 W Gall... '3 Manag- Mlndar W... a MOTEGI RACING... Q In Defense of Fund... I] Grad aludenla hull... Produul margin ' 'S 0 3. Prepare a quanlilaliua mmpar'amn of lha tradilional and awry-based cos! asm'gnrnanls. (Round your inhrmudlaln calculation; to 2 daulrnal plan\" and "Poms nlage" ansmr lo 1 decimal place. (La. .1234 should be antarod as 12.3) and alhar anlwm In nearest whola dollar amounts] Tradiliunal Gust System Total coal assigned to produds S 0 5 0 D Total coal ' Chroma Fiia Edi'l Visw History Bookmarks Paapla Winduw Help $ ?1)}} 3455le 3311:2APM FamNShlmlrrl Q 55 m maptersaven x "- ( - G I G) eztamhaducaiionnom/hmdpx 555 Anna O Unlvaruliy Search I... D OnllnI Registration 6 In Defense of Fund... u- JZ 10-13 W Gall... '3 MaaaaaI Minder W... a MOTEGI RACING... Q In Defense of Fund... I] Grad students hull... AniivyB-ssd Cosiing System Direct casts: Indirect Isis: Tmal 6061 assimed to pmdumi 5 D 5 D $ 0 Oasis not assigned in products