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Check my wo 2 Problem 7-16 (Algo) Comparing Traditional and Activity-Based Product Margins (L07-1, L07-3, L07-4, L07-5) 100 poleta Hi-Tek Manufacturing, Inc, makes two types of industrial component parts--the 8300 and the T500. An absorption costing income statement for the most recent period is shown -Tex Hanraturing The Income Statement sales 51,714,000 Cost of goods sola 1.219.965 Grosmarin 494,032 Selling and sinistrative expenses 650.000 met operating 10 1 (155,966) Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12.700 units of T500 at a price of $40 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. 30 700 Total Direct stets $400,500 5162,309 362,800 Direct labor $120,700 $12.900 16),600 Maaturing the 493,548 Coat of goods sold The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $104,000 of the company's advertising expenses could be directly traced to 8300 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 (setup hours) Product-sustaining number of products) Other (organization-sustaining costs) Total manufacturing overhead coat Manufacturing Overhead $ 201,828 130,240 101,400 60,100 $ 493,568 Activity 3300 T500 Total 90,400 62,500 152,900 76 220 296 1 1 2 NA NA NA 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 Regulee Required 2 > 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 T500 Total % of % of Amount Amount Amount Traditional Cost System % % % % % % Total cost assigned to products Total cost B300 T500 Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % % % % indirect costs % % % Indirect costs % % % % % % Total cost assigned to products Costs not assigned to products: Total cost Required 2 Red