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: Ri-Tek Manufacturing Ine. Income tatement Bales Coat of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,757,400 1,210,-152 539,048 580.000 (40,952) HI-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,700 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. B300 $ 400,900 $ 120,100 T500 $ 162,200 $ 42,800 Direct materials Direct labor Manutacturing overhead Coat of goods sold T otal $ 563,100 1 62,900 492,352 $1,218,352 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $57,000 and $103,000 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 Cont Pool (and Activity Measure) Machining machine-hours) Setups (netup hours) Product-sustaining number of products) Other (organization-sustaining conta) Total manufacturing overhead cost Manufacturing Netivity Overhead B300 T500 Total $ 210, 432 9 0,700 62,900 153,600 120, 120 76 210 101,600 11 60,200 NA NA 9.492,352 286 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 $ 0 Required 2 > Required: 1. Compute the product margins for the 300 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 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.) B300 T 500 Total Product margin Required 1 Required 2 Required 3 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.) B300 T 500 % of % of Amount Amou Amount Traditional Cost System D % Total cost assigned to products $ 0 Total cost T Total B300 % of Amount Total Amount 500 % of Total Amount Amount Amount Activity-Based Costing System Direct costs: % Indirect costs: TOMLUVY Descu Total cost B300 % of Total Amount OP Total Amount Amount Amount Amount Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost Required 2