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Hi-Tek Manufacturing, Inc., 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 Manufacturing Inc. Income Statement Sales $ 1,691,400 Cost of goods sold 1,241,085 Gross margin 450,315 Selling and administrative expenses 590,000 Net joperating loss (139,685) Hi-Tek produced and sold 60,000 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 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: 3300 Total Direct materials $ 400,500 $ 162,500 $ 563,000 Direct labor $ 42,800 163, 100 Manufacturing overhead 514.985 Cost of goods sold $ 1,241,085 T500 $ 120,300 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $110,000 of the company's 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 company's manufacturing overhead to four activities as shown below MUURIMVUYVIRLIT VLTALU WWW 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 3300 T500 Total Machining (machine hours) $ 206,685 90,409 62,700 153,100 Setups (setup hours) 147,000 70 280 350 Product sustaining (number of products) 100,600 1 Other (organization sustaining costs) 60,700 NA Tot manufacturing overhead cost $ 514,985 1 2 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 Compute the product margins for the 3300 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)

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