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Hi-Tek Manufacturing, Inc., makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek Manufacturing Inc. Income Statement
Sales	$	1,710,000
Cost of goods sold		1,230,814
Gross margin		479,186
Selling and administrative expenses		580,000
Net operating loss	$	(100,814	)

Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,700 units of T500 at a price of $40 per unit. The companys 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 companys two product lines is shown below:

	B300		T500		Total
Direct materials	$	400,500	$	162,700	$	563,200
Direct labor	$	120,400	$	42,400		162,800
Manufacturing overhead						504,814
Cost of goods sold					$	1,230,814

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $58,000 and $109,000 of the companys 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 companys manufacturing overhead to four activities as shown below:

	Manufacturing Overhead			Activity
Activity Cost Pool (and Activity Measure)				B300	T500	Total
Machining (machine-hours)	$	205,154		90,300	62,800	153,100
Setups (setup hours)		137,760		78	250	328
Product-sustaining (number of products)		101,000		1	1	2
Other (organization-sustaining costs)		60,900		NA	NA	NA
Total manufacturing overhead cost	$	504,814
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 Direct materials $400,500 71.1 % $162,700 28.9 % $563,200 Direct labor 120,400 74.0 % 42,400 26.0 % 162,800 Manufacturing overhead 373,339 74.0 % 131,475 26.0 % 504,804 Total cost assigned to products $894,239 $336,575 $1,230,804 Selling and administrative Total cost $1,230,804 B300 T500 Total % of % of Amount Total Amount Amount Total Amount Amount Activity-Based Costing System Direct costs: Direct materials $400,500 71.1 % $162,700 28.9 % $563,200 Direct labor 120,400 74.0 % 42,400 26.0 % 162,800 Advertising expense 58,000 % 109,000 % 167,000 Indirect costs: Machining 121,002 59.0 % 84,152 41.0 % 205,154 Setups 32,760 23.8 % 105,000 76.2 % 137,760 Product sustaining 50,500 50.0 % 50,500 50.0 % 101,000 Total cost assigned to products $783,162 $553,752 1,336,914 Costs not assigned to products: Selling and administrative 413,000 Other 60,900 Total cost $1,810,814 What is the advertising expense % of total amount?

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