Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the BSOO and the T500. An absorption costing income statement for the most recent perlod is shown: Hil- Tek produced and sold 60,400 unlts of B 300 at a price of $19 per unit and 12700 units of T 500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and clrect labor dollars as the allocation base. Adctional information relating to the company's two product innes is shown below: The company has created an activty-based costing system to evaluate the prontablilty of its products. Hi-Tek's ABC implementation team concluded that $56 , 000 and $106 , 000 of the company's advertising expenses could be clrectiy traced to B300 and T500, respectively. The remainder of the selling and acministrative expenses was organization-sustaining in nature. The ABC team also clstributed the company's manufacturing overhead to four activities as shown below: Required: 1. Compute the product margins for the B300 and T500 under the company's tracitional costing system. 2 Compute the procuct margins for BSOO and TSOO under the actlvity-based costing system. 3. Prepare a quantitative comparlson of the tracltional and activity-based cost assignments. Complete this question by entering your answers in the tabs below. Prepare a quantitative comparison of the traditianal and activity-based cast assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal ploce and and other answers to the nearest whole dallar ampunts.').

1. Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the BSOO
and the T500. An absorption costing income statement for the most recent perlod is shown: Hil-
Tek produced and sold 60,400 unlts of B 300 at a price of $19 per unit and 12700 units of T 500
at a price of $40 per unit. The company's traditional cost system allocates manufacturing
overhead to products using a plantwide overhead rate and clrect labor dollars as the allocation
base. Adctional information relating to the company's two product innes is shown below: The
company has created an activty-based costing system to evaluate the prontablilty of its products.
Hi-Tek's ABC implementation team concluded that $56 , 000 and $106 , 000 of the company's
advertising expenses could be clrectiy traced to B300 and T500, respectively. The remainder of
the selling and acministrative expenses was organization-sustaining in nature. The ABC team
also clstributed the company's manufacturing overhead to four activities as shown below:
Required: 1. Compute the product margins for the B300 and T500 under the company's
tracitional costing system. 2 Compute the procuct margins for BSOO and TSOO under the
actlvity-based costing system. 3. Prepare a quantitative comparlson of the tracltional and
activity-based cost assignments. Complete this question by entering your answers in the tabs
below. Prepare a quantitative comparison of the traditianal and activity-based cast assignments.
(Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1
decimal ploce and and other answers to the nearest whole dallar ampunts.')