Please help with T500. Thank you :) Hi-Tek Manufacturing Inc.Income Statement$ 1,714,0001,246,844467,156SalesCost of goods soldGross marginSelling and administrative expenses590,000(122,844)Net operating loss$Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,800 units of T500 at a price of $40 per unit. Thecompany's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labordollars as the allocation base. Additional information relating to the company's two product lines is shown below:B300T500Total$ 400,100$ 120, 200Direct materials$ 162,100$4562, 200162, 200Direct labor$42,000Manufacturing overhead522,444Cost of goods sold$ 1,246,844The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementationteam concluded that $53,000 and $109,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:ManufacturingActivityActivity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)Product-sustaining (number of products)Other (organization-sustaining costs)OverheadB300Т500Total$ 209,884150,06091,00062,200153,20076290366101,60011260,900NANANATotal manufacturing overhead cost$ 522,444 Required 1Required 2Required 3Compute 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.)B300T500TotalProduct$ 422,070$ 56,014 X $ 478,084margin

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Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,714,000 Cost of goods sold Gross margin Selling and administrative expenses 1,246,844 467,156 590,000 Net operating loss 2$ (122,844) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,800 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: взе T500 Total $ 400,100 $ 120,200 $ 162,100 $ $ 42,000 Direct materials 562,200 162,200 522,444 Direct labor Manufacturing overhead Cost of goods sold $ 1,246,844

Hi-Tek Manufacturing Inc. Income Statement Sales $ 1,714,000 Cost of goods sold Gross margin Selling and administrative expenses 1,246,844 467,156 590,000 Net operating loss 2$ (122,844) Hi-Tek produced and sold 60,100 units of B300 at a price of $20 per unit and 12,800 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: взе T500 Total $ 400,100 $ 120,200 $ 162,100 $ $ 42,000 Direct materials 562,200 162,200 522,444 Direct labor Manufacturing overhead Cost of goods sold $ 1,246,844

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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