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Assignment 3:Activity Based Costing Help Save & Exit Submit 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: 3 Hi-Tek Manufacturing Inc. Income Statement Sales Cost of oods sold Gros marrin Selling and ministrative expenses Net operating loss 1.761,300 1247, 406 $13.892 650.000 points BOOK Pant Hi-Tek produced and sold 60,100 units of B300 at a price of $21 per unit and 12,800 units of T500 at a price of $39 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: References 3300 $ 100, 200 $ 120,500 1500 $ 162.600 2800 $ Direct materials Direct laber Manufacturing overhead Cost of soods sold Total 562 900 200 21 1.247.00 $ The company has created an activity based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $100,000 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 also distributed the company's manufacturing overhead to four activities as shown below – T acturing Activity Total Activity Ceat Pool Cand activity Bene) Eachining chine-hours) Setups (setup hours) Prodact-utaining unter of product 15.00 Assignment 3:Activity Based Costing Help Save & Exit Submit The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $59,000 and $100.000 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 also distributed the company's manufacturing overhead to four activities as shown below B300 9 0, 700 Activity T500 62.100 T otal 152.800 Activity Cost Pool and activity Measure) Eachining machine-hours) Setup Cetup hours) Prodact-ustaining mumker of products Other organization sustaining costs) Total manufacturing gerhead cost nufacturing Overhead $ 200, 168 152, 101.500 700 $ 521. 309 eBook Print References 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 3 28 Compute the product margins for the 300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T 500 Total Product mag $ 0 Total manufacturing overhead cost 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 1500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. points Complete this question by entering your answers in the tabs below. eBook Print Required 1 Required 2 Required 3 References Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300T500 Total Product margin Required 2 > Assignment 3:Activity Based Costing i Help Save & Total manufacturing overhead cost $ 521,308 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. points Complete this question by entering your answers in the tabs below. eBook Print Required 1 Rebuired 2 Required 3 References Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin Required 1 Required 2 Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and Percentage” answers to 1 decimal place and and other answers to the nearest whole dollar amounts.) B300 T500 Total points % of Amount Amount Amount Traditional Cost System eBook 1 Reference Total cost assigned to products BILLE AL OS 0 Total cost OCESO F B300 Total T500 % of Total Amount 5 Amount Total Amount mount Amount / Activity Based Costing System Direct costs Indirect costs 37- Total cost B300 Total T500 % of Total Amount Amount % of Total Amount Amount Amount points Activity-Based Costing System Direct costs eBook Print References Indirect costs 00 Total cost assigned to products Costs not assigned to products X S Total cost / Required 2

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