### Comparative Cost Assignment Analysis#### Instructions:You are required to prepare a quantitative comparison of traditional and activity-based cost assignments. Intermediate calculations must be rounded to 2 decimal places. Percentage answers should be to 1 decimal place, with other answers rounded to the nearest whole dollar amounts.#### Layout Explanation:The layout is divided into two main sections: the Traditional Cost System and the Activity-Based Costing System. Each section compares costs for two products, B300 and T500, and their total costs. Various cost elements, such as direct materials, direct labor, and indirect costs, are detailed within these sections.### Traditional Cost System#### B300- **Direct materials** - **Amount:** ______ - **% of Total:** ______ %- **Direct labor** - **Amount:** ______ - **% of Total:** ______ % **Total cost assigned to products:** $0#### T500- **Direct materials** - **Amount:** ______ - **% of Total:** ______ %- **Direct labor** - **Amount:** ______ - **% of Total:** ______ %**Total cost assigned to products:** $0**Total cost:** $0### Activity-Based Costing System#### Direct Costs for B300- **Amount:** ______ - **% of Total Amount:** ______ %#### Indirect Costs for B300- **Amount:** ______ - **% of Total Amount:** ______ %**Total cost assigned to products:** $0**Costs not assigned to products:**- ______**Total cost:** $0#### Direct Costs for T500- **Amount:** ______ - **% of Total Amount:** ______ %#### Indirect Costs for T500- **Amount:** ______ - **% of Total Amount:** ______ %**Total cost assigned to products:** $0**Costs not assigned to products:**- ______**Total cost:** $0#### SummaryThe provided data structure allows for a comprehensive comparison between traditional and activity-based costing systems. For each product, direct material and labor costs should be input and analyzed to present clear percentage distributions. Indirect costs are also incorporated in the activity-based system to show a refined cost allocation.Continue by filling out the required percentages and amounts in the respective fields to complete the cost comparison analysis. Adjust the calculations as per the provided rounding instructions to maintain accuracy and consistency in the report ---### Hi-Tek Manufacturing, Inc. Cost Analysis#### Income StatementHi-Tek Manufacturing, Inc. produces two types of industrial component parts: the B300 and the T500. Below is the absorption costing income statement for the most recent period:| Income Statement | Amount ||-------------------------------|---------|| **Sales** | $1,652,000 || **Cost of Goods Sold** | $1,241,100 || **Gross Margin** | $410,900 || **Selling and Administrative Expenses** | $550,000 || **Net Operating Loss** | $(139,100) |#### Production and AllocationHi-Tek produced and sold 60,000 units of B300 priced at $19 per unit, and 12,800 units of T500 priced at $40 per unit. The company's traditional cost system uses a plantwide overhead rate with direct labor dollars as the allocation base. Additional production information is shown below:| | B300 | T500 | Total ||--------------------------------|-----------|-----------|--------------|| **Direct Materials** | $400,700 | $162,200 | $562,900 || **Direct Labor** | $120,700 | $42,300 | $163,000 || **Manufacturing Overhead** | | | $515,200 || **Cost of Goods Sold** | | | $1,241,100 |#### Activity-Based Costing (ABC)To better evaluate the profitability of its products, Hi-Tek implemented an activity-based costing (ABC) system. Findings indicated that $54,000 and $109,000 of the company's advertising expenses could be directly traced to B300 and T500, respectively. The rest of the selling and administrative expenses was organization-sustaining. The manufacturing overhead was distributed to four activities as shown below:| Activity Cost Pool (and Activity Measure) | Overhead Amount | B300 Activity | T500 Activity | Total Activity ||--------------------------------------------------------|------------------|---------------|---------------|----------------|| **Machining (machine-hours)** | $198,640 | 90,200 | 62,600 | 152,800 || **Setups (setup hours)** | $155,660 | 72 | 290 |

Name: ### Comparative Cost Assignment Analysis#### Instructions:You are req
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ### Comparative Cost Assignment Analysis#### Instructions:You are required to prepare a quantitative comparison of traditional and activity-based cost assignments. Intermediate calculations must be rounded to 2 decimal places. Percentage answers sho