Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costingincome statement for the most recent period is shown:Hi-Tek Manufacturing IncorporatedIncome Statement.SalesCost of goods sold.Gross marginSelling and administrative expensesNet operating lossHi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. Thecompany's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labordollars as the allocation base. Additional information relating to the company's two product lines is shown below:Direct materialsDirect laborManufacturing overheadCost of goods soldActivity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)Product-sustaining (number of products)Other (organization-sustaining costs)Total manufacturing overhead costThe company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementationteam concluded that $56,000 and $108,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:Required 1B300$ 400,400$ 121,000$ 1,697,4001,219,596477,804630,000$ (152,196)Required 2 Required 3Product marginComplete this question by entering your answers in the tabs below.T500$ 162,700$ 42,300B300T500Total$ 563,100163,300493,196$ 1,219,596ManufacturingOverhead$ 207,536125,160100, 20060,300$ 493,196Required: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.B30090,100Total781ΝΑActivityT50062,5002201ΝΑTotal152,600Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins shouldbe indicated by a minus sign. Round your intermediate calculations to 2 decimal places.)2982ΝΑ Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costingincome statement for the most recent period is shown:Hi-Tek Manufacturing IncorporatedIncome StatementSalesCost of goods soldGross marginSelling and administrative expensesNet operating lossHi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,600 units of T500 at a price of $39 per unit. Thecompany's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labordollars as the allocation base. Additional information relating to the company's two product lines is shown below:Direct materials.Direct laborManufacturing overheadCost of goods soldActivity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)$ 1,697,4001,219,596477,804630,000$ (152,196)B300$ 400,400$ 121,000Product-sustaining (number of products)Other (organization-sustaining costs)Total manufacturing overhead costThe company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementationteam concluded that $56,000 and $108,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:Product marginT500$ 162,700$ 42,300B300Complete this question by entering your answers in the tabs below.ManufacturingOverhead$ 207,536125,160100,20060,300$493,196T500Total$ 563,100163,300493, 196$ 1,219,596B30090,100Total78Required: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.1ΝΑActivityT50062,5002201ΝΑRequired 1 Required 2 Required 3Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round yourintermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)Total152,6002982ΝΑ

Under traditional costing system a single overhead rate is predetermined and used for allocating…

Hi-Tek Manufacturing, incorporated, income statement for the most recent period is shown: Hi-Tek Manufacturing Incorporated Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss. Hi-Tek produced and sold 60,300 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: Direct materials. Direct labor Manufacturing overhead Cost of goods sold Activity Cost Pool (and Activity Measure) Machining (machine-hours) $ 1,697,400 1,219,596 477,804 630,000 $ (152,196) B300 $ 400,400 $ 121,000 Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $108,000 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: Required 1 T500 $ 162,700 $ 42,300 Required 2 Required 3 Total $ 563,100 163,300 493,196 $ 1,219,596 Complete this question by entering your answers in the tabs below. Manufacturing Overhead $ 207,536 125,160 100,200 60,300 $493,196 B300 90,100 78 1 ΝΑ Activity T500 62,500 220 1 ΝΑ 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. Total 152,600 298 2 ΝΑ Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should