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this is all one question. i only nned required 2 and 2 I-Tek Manufacturing, incorporated, makes two types of industrial component parts - the B300
this is all one question.
i only nned required 2 and 2
I-Tek Manufacturing, incorporated, makes two types of industrial component parts - the B300 and the T500, An absorption costing icome statement for the most recent period is shown: 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 $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: 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 $108,000 of the company's advertising expenses could be directly traced to B300 and T500. tespectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distrbuted the company's manufacturing overhead to four activities as shown below. Requited: 1. Compute the proctuct margins for the 8300 and 1500 under the company's traditional costeng system 2 Compute the product margins for E300 and 1500 under the activity based costing bystem. 3. Prepare a quantitative comparison of the traditional and activity based cost assignments: Complete this question by entering rirur answers in the tabs below. Compute the product margins for the B300 and T500 under the company's traditional costing system intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Compute the prod x, margins for 3300 and 1500 under the activity-based costing system. (Negative prodi be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) pliz Step by Step Solution
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