Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statemenfor the most recent period is shown below: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 12,500 units of T500 at a price of $40 per unit. Thecompany's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labordollars as the allocation base. Additional information relating to the company's two product lines is shown below:Direct materialsDirect laborManufacturing overheadCost of goods soldActivity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)Product-sustaining (number of products)Other (organization-sustaining costs)Total manufacturing overhead costB300$ 400,600$ 120,700The company created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation teamconcluded that $60,000 and $104,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:$ 1,706,0001,221,008484,992570,000$ (85,008)Required 1 Required 2 Required 3Product marginComplete this question by entering your answers in the tabs below.B300T500$ 162,300$ 42,300T500Total$562,900163,000495,108$ 1,221,008ManufacturingOverhead$ 202,488131, 120100, 60060,900$ 495, 108< Required 1Required:1. Compute the product margins for 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.B30090,900Total781ΝΑActivityT50062,500220Required 3 >1Compute the product margins for B300 and T500 under the activity-based costing system.Note: Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimalplaces.ΝΑTotal153,4002982ΝΑ Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statefor the most recent period is shown below:Hi-Tek Manufacturing, IncorporatedIncome StatementSalesCost of goods soldGross marginSelling and administrative expensesNet operating loss.Hi-Tek produced and sold 60,300 units of B300 at a price of $20 per unit and 12,500 units of T500 at a price of $40 per unit. Thecompany's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labodollars as the allocation base. Additional information relating to the company's two product lines is shown below:Direct materialsDirect laborManufacturing overheadCost of goods sold$ 1,706,0001,221,008484,992570,000$ (85,008)Activity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)Product-sustaining (number of products)Other (organization-sustaining costs)Total manufacturing overhead costB300$ 400,600$ 120,700The company created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation tconcluded that $60,000 and $104,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsoted company's manufacturing overhead to four activities as shown below:Product marginB300T500$ 162,300$ 42,300Complete this question by entering your answers in the tabs below.T500Total$ 562,900163,000495, 108$ 1,221,008ManufacturingOverhead$ 202,488131, 120100, 60060,900$495, 108< Required 1B30090,900Required:1. Compute the product margins for 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.Total781ΝΑRequired 2 >ActivityT50062,5002201Required 1 Required 2 Required 3Compute the product margins for B300 and T500 under the company's traditional costing system.Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.ΝΑTotal153,4002982ΝΑ

Product margin is computed by deducting the cost of goods sold from the sales revenue. The product…

Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income stateme for the most recent period is shown below: 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 12,500 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) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost $ 1,706,000 1,221,008 484,992 570,000 $ (85,008) B300 $ 400,600 $ 120,700 The company created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $60,000 and $104,000 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 Required 2 Required 3 Product margin Complete this question by entering your answers in the tabs below. B300 T500 $ 162,300 $ 42,300 T500 Total $ 562,900 163,000 495,108 $ 1,221,008 Manufacturing Overhead $ 202,488 131, 120 100,600 60,900 $495, 108 < Required 1 Required: 1. Compute the product margins for 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. B300 90,900 Total 78 1 ΝΑ Compute the product margins for B300 and T500 under the activity-based costing system. Note: Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Required 3 > Activity T500 62,500 220 1 ΝΑ Total 153,400 298 2 ΝΑ