Please don't give image format 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 60,500 units of 8300 at a price of $20 per unit and 12,700 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)The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementationteam concluded that $55,000 and $109,000 of the company's advertising expenses could be directly traced to 8300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:Product-sustaining (number of products)Other (organization-sustaining costs)Total manufacturing overhead cost$ 1,705,3001,243,104462,196580,000$(117,804)B300T500$ 401,000 $ 162,700$ 120,100 $ 42,100Show Transcribed TextProduct marginComplete this question by entering your answers in the tabs below.B300Total$ 563,700162,200517,204$ 1,243, 104ManufacturingOverhead$ 205,824150,480100,20060,700$ 517,204Required 1830090,600721ΝΑRequired: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.ActivityT50063,0002701Required 2 >NARequired 1 Required 2Required 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.)T500TotalTotal153,6003422NA Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Compute 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.)Product marginShow Transcribed TextTraditional Cost SystemTotal cost assigned to productsTotal costActivity-Based Costing SystemDirect costs:Indirect costs:8300Total cost assigned to productsCosts not assigned to products:Total costT500to the thao tác trên đất ở thự tại thị ở một thế h TH QUAN PHAM BANH BAC HO KHAN HÀNH BAN HA ĐÃ Các thế hệđột với nhi thế hơn NHANHT500< Required 1$$Amount$Amount3TotalB3000B30000< Required 2Required 3 >%% of% ofTotalAmount$$AmountAmount0T5000Required 3 >% of% ofTotalAmount$Total Amount$$Total Amount0000

Name: Please don't give image format Hi-Tek Manufacturing, Incorporated, mak
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Please don't give image format 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

ABC costing systemABC costing system is also known as an activity-based costing system. The system…

Business

Accounting

Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the 8300 and the T500. An absorption costing 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 60,500 units of 8300 at a price of $20 per unit and 12,700 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 $ 1,705,300 1,243,104 462,196 580,000 $ (117,804) 8300 $ 401,000 $ 120,100 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost T500 $ 162,700 $ 42,100 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $55,000 and $109,000 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: Total $ 563,700 162,200 517,204 $ 1,243, 104 Manufacturing Overhead $ 205,824 150,480 100,200 60,700 $ 517,204 8300 90,600 72 1 NA Activity 1500 63,000 270 1 NA Total 153,600 342 2 Required: 1. Compute the product margins for the 8300 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. NA