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Hi$-$Tek Manufacturing, Incorporated, makes two industrial component parts$-$B$300$ and T$500.$ An absorption costing income statement Required:

Compute the product margins for B$300$ and T$500$ under the company's traditional costing system.

Compute the product margins for B$300$ and T$500$ under the activity$-$based costing system.

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 $3$

Compute the product margins for B$300$ and T$500$ under the company's traditional costing system.

Note: Round your intermediate calculations to $2$ decimal places and final answers to the nearest whole dollar amount. Required:

Compute the product margins for B$300$ and T$500$ under the company's traditional costing system.

Compute the product margins for B$300$ and T$500$ under the activity$-$based costing system.

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 B$300$ and T$500$ under the activity$-$based costing system.

Note: Negative product margins should be indicated by a minus sign. Round your intermediate calculations to $2$ decimal

places. $\backslash$table$[[,$B$300,$T$500,$Total Amount$],[,$Amount,$\backslash$table$[[\%$ of$],[$Total$],[$Amount$]],$Amount,$\backslash$table$[[\%$ of$],[$Total$],[$Amount$]]],[],[$Traditional Cost System$],[,,,,,,],[,,,,,,],[,,,,,,],[$Total cost assigned to products,$$,0,,$$$,,$$$],[,,,,,,],[$Total cost$,,,,,,$$$],[$B$300,$T$500,$Total Amount$],[,,\%$ of$,,\%$ of$],[,$Amount,$\backslash$table$[[$Total$],[$Amount$]],$Amount,$\backslash$table$[[$Total$],[$Amount$]]],[$Activity$-$Based Costing System$],[$Direct costs:$],[,,,,,,],[,,,,,,],[,,,,,,],[$Indirect costs:$],[,,,,,,],[,,,,,,],[,,,,,,],[$Total cost assigned to products,$$,0,,$$$,,0],[$Costs not assigned to products:$],[,,,,,,]]$

for the most recent period is shown below:

Hi$-$Tek produced and sold $60,200$ units of $B300$ at a price of $$20$ per unit and $12,600$ units of T$500$ at a price of $$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:

The company created an activity$-$based costing system to evaluate the profitability of its products. Hi$-$Tek's ABC implementation team

concluded that $$51,000$ and $$103,000$ of the company's advertising expenses could be directly traced to B$300$ and T$500,$ 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:

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