Hi-Tek Manufacturing, Incorporated, makes two types of industrial component partsthe 8300 and the 1500 An absorption costing income statement for the most recent period is shown HE-Tek Manufacturing Incorporated Income Statement Sales 5 1,695,500 Cost of goods sold 1,247,906 Gross margin 447,596 Selling and administrative expenses 640,000 Net operating loss 5 (192,404) Hi-Tek produced and sold 60,400 units of 8300 ot a price of $20 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 8300 T500 Total Direct materials S 400,200 $ 162,300 5 562,500 Direct labor $ 120,500 $ 42,500 163,000 Manufacturing overhead 522,404 Cost of goods sold 51,247,904 The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $52,000 and $104,000 of the companys advertising expenses could be clirectly traced to 1300 and 1500. respectively. The remainder of the selling and administrativt expenses was organization sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead 300 T500 Total Machining (nachine-hours) $ 199,644 90,200 62,200 152,400 Setups (setup hours) 162,360 79 290 369 Product -sustaining (number of products) 100,000 1 1 2 Other (organization Sustaining costs) 60,400 MA NA Total manufacturing overhead cost $ 122,404 NA Required: 1. Compute the product margins for the B300 and 1500 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 8300 and T500 under gre company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answek to the nearest whole dollar amount.) B300 T500 Product margin Required 2 > Total 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 T500 Total Product margin Prepare a quantitative comparison of the traditional and activity based cost assignments. (Round your intermediate calculations to 2 decimal s and "Percentage answers to 1 dedmal place and and other answers to the nearest whole dollar amounts.) 3300 T500 % of of Total Amount Amount Amount Traditional Cost System Total cost assigned to products Total cost T500 8300 Total Amount % of Total Amount % of Total Amount Amount Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Costs not assigned to products Total cost Ponud 2