I believe there is something missing on my chart above the "Total Cost" line. Please help! Thank you! :) Required 1Required 2Required 3Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimalplaces and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.)B300T500Total% of% ofAmountAmountAmountTraditional Cost SystemDirect materials2$400,10071.2 %$162,10028.8 %$562,200Direct labor120,20074.1 %42,00025.9 %162,200Manufacturing overhead387,04474.1 %135,24025.9 %522,284Total cost assigned to products2$907,344$339,340$1,246,684Total cost$1,246,684 Hi-Tek Manufacturing Inc.Income Statement$ 1,714,0001,246,844467,156590,000(122,844)SalesCost of goods soldGross marginSelling and administrative expensesNet 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$ 162,100562, 200162,200522,444Direct labor$442,000Manufacturing overheadCost of goods sold$ 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 $109,000 of the company's advertising expenses could be directly traced to B300 and T500,respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team alsodistributed the company's manufacturing overhead to four activities as shown below:ManufacturingActivityActivity Cost Pool (and Activity Measure)Machining (machine-hours)Setups (setup hours)Product-sustaining (number of products)Other (organization-sustaining costs)OverheadB300T500Total$ 209,884150,060101,60060,900$ 522,44491,00062,200153, 20076290366112NANANATotal manufacturing overhead cost

Selling and administrative expenses: These are non-production expenses but are incurred for the…

Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decir places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total % of % of Amount Amount Amount Traditional Cost System Direct materials $ 400,100 71.2 % 162,100 28.8 % $ 562,200 Direct labor 120,200 74.1 % 42,000 25.9 % 162,200 Manufacturing overhead 387,044 74.1 % 135,240 25.9 % 522,284 Total cost assigned to products $ 907,344 $ 339,340 $ 1,246,684 Total cost $ 1,246,684

Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decir places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total % of % of Amount Amount Amount Traditional Cost System Direct materials $ 400,100 71.2 % 162,100 28.8 % $ 562,200 Direct labor 120,200 74.1 % 42,000 25.9 % 162,200 Manufacturing overhead 387,044 74.1 % 135,240 25.9 % 522,284 Total cost assigned to products $ 907,344 $ 339,340 $ 1,246,684 Total cost $ 1,246,684

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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