Please do not give image format and solve all required Required: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.Required 1 Required 2 Required 3Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round yourintermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)Product marginShow Transcribed TextRequired 1 Required 2Product marginRequired: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.Traditional Cost SystemTotal cost assigned to productsB300Show Transcribed TextTotal costCompute the product margins for 8300 and T500 under the activity-based costing system. (Negative product margins shoube indicated by a minus sign. Round your intermediate calculations to 2 decimal places.)TotalActivity-Based Costing SystemDirect costs:Indirect costs:Total cost assigned to productsCosts not assigned to products:Required 3Total cost8300T5004$$T500AmountAmountB300$0B300Total$% of% ofTotalAmount0$$AmountT5000T500Amount0% of% ofTotalAmountTotal Amount$$0Total Amount$0 Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the T500. An absorption costingincome statement for the most recent period is shown:Hi-Tek Manufacturing IncorporatedIncome StatementSalesCost of goods soldGross marginSelling and administrative expensesNet operating lossHi-Tek produced and sold 60,400 units of B300 at a price of $19 per unit and 12,700 units of T500 at a price of $39 per unit. Thecompany's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labordollars as the allocation base. Additional information relating to the company's two product lines is shown below:Direct materialsDirect laborManufacturing overheadCost of goods sold$ 1,642,9001,246,912395,988590,000$ (194,012)8300$ 400,800$ 120,900Activity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)Product-sustaining (number of products)Other (organization-sustaining costs)Total manufacturing overhead costT500$ 162,100.$ 42,700The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementationteam concluded that $56,000 and $106,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:Total$ 562,900163,600520,412$ 1,246,912ManufacturingOverhead$ 206,092153, 120100, 20061,000$ 520,412830090,900781NAActivityT50062,900270RIM1NATotal153,8003482NA

Name: Please do not give image format and solve all required Required:1. Com
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Please do not give image format and solve all required Required: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 syst