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1.-Tek Manufachuring. Incorporated, makes fwo types of industrial congonent patts-the B300 and the T500 An absorption costing mcome statement for themost recent penod is show? Hik Tek produced and sold 60300 units of 8300 at a pnce of $20 per unt and 12700 unts of 7500 at a price of $90 per une. The componys traditiond cost system allocates manutacturing ovechead to products using a plantivide overhead rate and diect labor deliars as the afocation base. Additional rfomabon resating to the corrgands fwo product ines is shown below The compary has cieated an attivity bused costing syatem to evaluate the profiabiify of is product Hi Tek' ABC ITpieqnentabon 1eam canchuded that 554000 and 510,000 of the companys advertinig expenses could be diectly traced to 8300 and ISO0. respectively The rerwender of the seling and adnirithative erpenses was organizatan wustaving in nature. The AtiC thant aho cotritated the congary's mandacturing overtiest fo four acivives as shown below Reevired: 1. Campute the produc margins far the 0300 and 1390 jeider the company b eachiond centrig sytem 2. Compute the propfict enargins for Bisog and 1500 ander the arsenty based costing thitem H.-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 produced and sold 60,300 units of 8300 at a price of $20 per unit and 12700 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: The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $54,000 and $110,000 of the company's advertising expenses could be directly traced to B300 and 1500 . respectively. The remainder of the seling and administrative expenses was organzation-sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below. Required: 1. Compute the product margins for the 8300 and 1500 under the companys traditional costing system. 2. Compute the product margins for B300 and TS00 under the activity-based costing system 3. Prepare a quantitative comparison of the tradaional and activity-based cost assignments 1. Compute the product margins for the B300 and T500 under the company's traditional costing 5ystem. 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. Complete this question by entering your answers in the tabs below. Compute the product margins for the 8300 and T500 under the compamy's traditional costing system. Note: Round your intermediate calculations to 2 decimal placis and final answers to the nearest whole dollar amount. 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. Complete this question by entering your answers in the tabs below: Compute the product margins for B300 and T500 under the activity-based costing system. Wote: Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Deeaare a quantitative corrparison of the traditional and activity-based cost assignments

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