Hi-Tek Manufacturing, Inc., makes two types of Industrial component parts—the B300 and the T500. An absorption...

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Hi-Tek Manufacturing, Inc., makes two types of Industrial component parts—the B300 and the T500. An absorption costing Income

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margi

Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculatio

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 $ 1,784, eee 1,249,503 454, 497 568,eee $ (185,583) Hi-Tek produced and sold 60.000 units of B300 at a price of $20 per unit and 12.600 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. B3ee Tsee $ 400, 100 $ 162.100 $ 128,400 $ 42,700 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 562.2ee 163, 180 524.203 $ 1,249,503 The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek's ABC implementation team concluded that $56,000 and $104.000 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: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 289,823 161,488 181,600 60,300 $ 524,203 Activity 9380 TSO 99,889 62,500 77 290 1 1 NA NA Total 153,30€ 367 2 NA 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 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.) B300 T500 Total Product margin Required Required 2 >

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 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 % of % of Amount Amount Amount Traditional Cost System % % % 90 % Total cost assigned to products Total cost T500 Total B300 % of Total Amount % of Amount Amount Total Amount Amount Activity-Based Costing System Direct costs % % % % Indirect costs: % % % % Total cost assigned to products Costs not assigned to products: Total cost

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&#1093; Cla Question Sheetv7 - Microsoft Excel Home Insert Page Layout Formulas Data Review View Developer QuickBooks (?) X 11 A B &#1089; D E F G H J J K L L M N 0 1 2 1) 3 4 5 6 7 Calculation of product margin as per Traditional costing Total B300 T500 No. of Units Sold 60,000 12,600 Per Unit B300 T500 60,000 12,600 Sales: 1,200,000 504,000 20 40 8 9 10 11 Less: Cost of Goods Sold Direct material Direct labor manufacturing overhead 400,100 120,400 386,965 162,100 42,700 137,238 6.67 2.01 6.45 12.87 3.39 10.89 12 13 14 Product Margin 292,535 161,962 4.88 12.85 15 16 17 2) Total B300 18 19 20 T500 12,600 Per Unit B300 T500 60,000 12,600 No. of Units Sold 60,000 21 Sales: 1,200,000 504,000 20 40 22 6.67 23 24 25 26 27 Less: Cost of Goods Sold : Direct material Direct labor manufacturing overhead Less: Selling and Admin Exp 400,100 120,400 203,628 56,000 162,100 42.700 260,275 104,000 2.01 3.39 12.87 3.39 20.66 (See Note 1 Below) 8.25 0.93 28 29 Product Margin 419,872 (65,075) 7.00 (5.16) 30 31 32 Sheet2023 Sheet2024 Sheet2025 Sheet2026 Sheet2027 Sheet2028 Sheet2029 Sheet2030 Sheet2031 Sheet2032 Sheet2033 Activate Windows Go to PC settings to activate Windows Sheet2034 sh Shl W 90% - U + Q 4:55 AM 21/09/20 Ready X Question Sheetv7 - Microsoft Excel &#1093; Cla Home Insert Page Layout Formulas Data Review View Developer QuickBooks (?) X 161 A foc | B Note 1: Overhead allocation sheet &#1089; D E F G H J K L L M N 0 33 34 T500 35 Activity Machining Setup Product Sustaining Total OH Cost 200,823 161,480 36 37 Total Cost Driver 153300 367 2 B300 Driver OH Cost Incurred assigned 90800 118948 77 33880 1 50800 OH Rate 1.31 440.00 50800.00 Driver Incurred 62500 290 OH Cost assigned 81875 127600 50800 101,600 1 38 39 40 Total 463,903 203628 260275 41 Quantitative Comparison of the traditional and activity based assignment. 42 3) 43 44 Traditional costing system ABC costing system 45 B300 T500 B300 T500 Total amount 46 %age Amount %age 47 48 49 50 Direct material Direct labor manufacturing overhead Amount 400,100 120,400 386,965 %age 71.2% 73.8% 73.8% Amount 162,100 42,700 137,238 %age 28.8% 26.2% 26.2% Total Amount 562,200 163,100 524,203 71.2% 73.8% 35.0% 162,100 42,700 104,000 28.8% 26.2% 65.0% 562,200 163,100 160,000 51 342,038 52 Total cost assigned to product 907,465 Selling and administrative Expense Total Cost 1,249,503 560,000 1,809,503 59.2% 40.8% Amount Direct cost: Direct material 400,100 Direct labor 120,400 Selling and Admin Exp 56,000 Indirect Cost: Machining 118,948 Setup 33,880 Product Sustaining 50,800 Total cost assigned to product 780,128 Cost Not assigned to product Selling and Admin Exp Other Total Cost 53 21.0% 79.0% 81,875 127,600 50.800 569,075 200,823 161,480 101,600 1,349,203 54 50.0% 50.0% 55 56 57 58 59 60 400,000 60,300 1,809,503 Activate Windows Go to PC settings to activate Windows Sheet2034 Shi Bem 90% U 61 Sheet2023 Sheet2024 Sheet2025 Sheet2026 Sheet2027 Sheet2028 Sheet2029 Sheet2030 Sheet2031 Sheet2032 Sheet2033 . Ready X Q 4:56 AM 21/09/20 .

Hi-Tek Manufacturing, Inc., makes two types of Industrial component parts—the B300 and the T500. An absorption...

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