Help Save & Ext Check my HI-Tek Manufacturing, Inc., makes two types of Industrial component parts--the 300 and the TS00. An absorption costing Income statement for the most recent period is shown Hi-Tek Hanufacturing the Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $ 1,635,200 1,226,790 408, 410 610,000 $ (201,590) Hi-Tek produced and sold 60,200 units of 8300 at a price of $19 per unit and 12,600 units of TSOO at a price of $99 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plontwide overhead rate and direct labor dollars as the allocation base. Additional Information relating to the company's two product lines is shown below: B300 Tsee Total Direct materials $ 400, 500 162,000 $ 563,400 Direct labor $ 120, 300 $ 42,600 162,900 Manufacturing overhead 500, 490 Cost of goods sold $1,226,790 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 $110,000 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 Cost Pool (and Activity Measure) Machining (machine-hours) Manufacturing Overhead $ 208, 880 Activity B300 T500 Total 90, 980 62,100 153,000 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 $110,000 of the company's advertising expenses could be directly traced to 1300 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 Cost Pool (and Activity Measure) Overhead B390 T583 Total Machining (nachine-hours) $ 200,000 98,998 62, 168 153,000 Setups (setup hours) 131, 610 71 258 321 Product -sustaining (number of products) 100,400 1 1 2. Other (organization-sustaining costs) 50, 400 NA NA NA Total manufacturing overhead cost $ 500, 490 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 1500 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 8300 and tsoo under the activity-based costing system. (Negative product margins should be indicated by a minus sigo Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin S Che Required 1 Required 2 Required 3 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.) Amount Traditional Cost System M Total cost assigned to products 0 $ $ 0 Total cost $ 0 Total B300 % of Total Amount T500 of Amount Total Amount Amount Amount Activity-Based Costing System Direct costs: 96 M Indirect costs Prev 1 of 5 18 Next > Check my work Activity-Based Costing System Direct costs: Indirect costs M 0 $ O Total cost assigned to products Costs not assigned to products: $ 0 Total cost