M Question 4 . Chapter 50uli- Hertombeducation.com/ext/map/indexhim!?_con= conberternal browser=08launchUri=https 625389 252796252Fnewconnect.mheducation.com3:252 M C OYoutube P Map Shin Houlton State Chapter 5 Quez @ 4 HI-Tek Manufacturing. Incorporated, makes two types of Industrial component parts-the 8300 and the 1500. An absorption co income statement for the most recent period is shown HI-Tek Manufacturing Incorporated Income Statement Sales $ 1,720,060 Cost of goods sold 1, 209,303 Gross margin 510,693 Selling and administrative expenses Net operating loss $ (129,309) Hi-Tek produced and sold 60.400 units of B300 at a price of $20 per unit and 12.800 units of 1500 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 lab dollars as the allocation base. Additional information relating to the company's two product lines is shown below. Total Direct materials $ 400, 405 $ 162,400 $ 552.860 Direct labor $ 120,090 1 42,909 162,900 manufacturing overhead 483.608: Cost of goods sold $ 1.209,508 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC Implementation team concluded that $55,000 and $108.000 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. Manufacturing Activity Cost Pool (and Activity Measure) Overhand Total Machining (machine -hours) $ 209, 148 90,200 52,600 152,809 Setups (setup hours) 127,640 72 320 Product sustaining ( number of products) 292 100, 680 Other (organization sustaining costs) Total manufacturing overhead cost $ 483, 685 Required