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Chapter 7 - Homework i Saved Help Save & Exit Submit Check my work 3 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $100,000 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: 33.34 points Manufacturing Activity Activity Cost Pool (and Activity Measure) Overhead B300 T506 Total Machining (machine-hours) $ 204, 618 90, 500 62, 200 152, 700 Setups ( setup hours) 146, 400 76 290 366 eBook Product- sustaining (number of products) 100, 400 Other (organization- sustaining costs) 60, 400 NA NA NA Print Total manufacturing overhead cost $ 511, 818 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 Mc Graw Hill Education