You have logged into MyPark | M X A McGraw-Hill Connect X 5 Question 4 - Unit 5 Application A Course Hero X + V X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts... Apps G Google TPP TW Webex [s Grants-TW MO WORLD Title VI Reporting TSHEET Colvin Bills Park UNIV_MBA DOT Email Imported Reading list Unit 5 Application Assignment Saved Help Submit Check my work 4 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. 7.14 Income Statement point sales 3 1,633,380 Cost of goods sold 1,235, 258 Gross margin 398 , 842 selling and administrative expenses 560, 08 Net operating loss (161, 958) Hint Hi-Tek produced and sold 60.100 units of B300 at a price of $19 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: 8308 TSea Total Direct material 480, 908 5 162, 208 563, 108 Direct labor $ 120, 108 $ 42, 720 Manufacturing overhead Cost of goods sold $ 1, 235, 258 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 $101,000 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 Activity Cost Pool (and Activity Measure) 8308 Total Machining (machine-hours) $ 205, 288 98, 408 62, 808 153.288 Setups (setup hours) 79 250 Product-sustaining (number of products) 181, 880 other (organization-sustaining costs) NA Total manufacturing overhead cost $ 589, 358 Required: 1. Compute the product margins for the 8300 and T500 under the company's traditional costing system. 2. Compute the product margins for B300 and T500 under the activity-based costing system. B. 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 $ 245.456 $ 152,849 $ 398,305 Required 2 > Grow Unit_8_Course_Pro...pdf Barnes&Nobles_U..pdf Show all X