Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An...
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Hi-Tek Manufacturing, Inc., 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 Inc Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,241,270 460, 730 560, 000 $ (99,270) Hi-Tek produced and sold 60,100 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: T500 Total B39 $4,400 Direct materials Direct labor Manufacturing overhead Cost of goods sold $162,800 $120, 800 42,100 $ 563,2 162, 900 515,170e $1, 241, 270
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