Chapter? Assignment 0 Saved 16 Hi-Tek Manufacturing, Incorporated. makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown: 0,29 HiTek Manufacturing Incnrpo rated polnts Income Statement Sales is 1, 15?,495 Cost of goods sold 1, 249,119 Gross margin 512,282 El Selling and administrative expenses 589,999 em Net operating loss $ (62,?18} Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,200 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 Hm dollars as the allocation base. Additional information relating to the company's two product lines is shown below: 9399 T599 Total Prlm Direct mate rials $ 499,699 $ 162,499 $ 563,999 Direct labor $ 129,899 $ 42, 199 162,999 Manufacturing overhead 514,219 Ili Cost of goods sold it 1; 243.113 References The company has created an activity-based costing system to evaluate the protability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $109,000 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: Manufacturing activity Activity Cast Pool (and Activity Measure} Overhead 3399 T599 Total Machining (machine-hours] $ 298,488 99,?99 62,699 153,399 Setups [setup hours] 144,239 73 299 353 Productsustaining [number of products) 199,999 1 1 2 other [organization-sustaining costs] 61,999 NA NA NA Total manufacturing overhead cost $ 5141213 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. Conuent: question II! 9M\". your am In annulus below. ' Required 1 Required 2 Required 3 Compute the product marglns for the B300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and nal answers to the nearest whole dollar amount.) mama" _