Problem 7-16 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7.5] Hi-Tek Manufacturing; Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,600 units of T500 ot a price of $40 per unit. The compony'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: The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $58,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and T500. respectively. The remainder of the selling and administrative expenses wos organization-sustaining in nature. The ABC team also - distributed the compony's manufacturing overhead to four activities as shown below: 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 octivity-bosed costing system. 3. Prepore a quantitative comparison of the traditional and activity-bosed cost ossignments. Complete this question by entering your answers in the tabs below. The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC imp team concluded that $58,000 and $102,000 of the company's advertising expenses could be directly traced to B300 ar respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC distributed the company's manufacturing overhead to four activities as shown below: 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. 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.) The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC impleme team concluded that $58,000 and $102,000 of the company's advertising expenses could be directly traced to B300 and T5 respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team distributed the company's manufacturing overhead to four activities as shown below: 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. Compute the product margins for 8300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) 1. Compute tne procuct margins tor the byuu and ibuU under tne company s traarionai 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. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calcula