Please do not give solution in image format thanku 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 loss.Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,500 units of T500 at a price of $40 per unit. Thecompany's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labordollars as the allocation base. Additional information relating to the company's two product lines is shown below:Direct materialsDirect laborManufacturing overheadCost of goods soldActivity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)Product-sustaining (number of products)Other (organization-sustaining costs)Total manufacturing overhead cost$ 1,768,4001,232,698535,702570,000$ (34,298)The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementationteam concluded that $60,000 and $108,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:Required 1 Required 2B300$ 400,600$ 121,000Required 3Product marginT500$ 162,400$ 42,200B300Complete this question by entering your answers in the tabs below.Total$ 563,000163,200506,498$ 1,232,698ManufacturingOverhead$ 204,618139,480101,80060,600$ 506,498T500Required: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.B30090,500771ΝΑTotalActivityT50062,2002401NACompute 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.)Total152,7003172ΝΑ Required 1Product marginCompute 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.)T500Required 2Required 1 Required 2 Required 3Traditional Cost SystemTotal cost assigned to productsTotal costPrepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimalplaces and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.)Activity-Based Costing SystemDirect costs:Indirect costs:Required 3Total cost assigned to products.Costs not assigned to products:Total costB300AmountB300Amount% ofTotalB300Amount% ofTotalAmountT500% ofT500AmountTotal Amount% ofTotalAmountTotal Amount

Name: Please do not give solution in image format thanku Hi-Tek Manufacturin
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Please do not give solution in image format thanku 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

Traditional Costing System: A traditional costing system is a method used to allocate manufacturing…

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Hi-Tek Manufacturing, Incorporated, 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 Incorporated Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,500 units of T500 at a price of $40 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) Setups (setup hours) The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $60,000 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: Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost $ 1,768,400 1,232,698 535,702 570,000 $ (34,298) B300 T500 $ 400,600 $ 162,400 $ 121,000 $ 42,200 Required 1 Required 2 Required 3 Product margin Complete this question by entering your answers in the tabs below. Total $ 563,000 163,200 506,498 $ 1,232,698 B300 Manufacturing Overhead $ 204,618 139,480 101,800 60,600 $ 506,498 T500 B300 90,500 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. 77 1 Total ΝΑ Activity T500 62,200 240 1 ΝΑ Compute the product margins for the B300 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.) Total 152,700 317 2 ΝΑ