- Hi Tek Manufacturing Incorporated Makes Two Types Of Industrial Component Parts The B300 And The T500 An Absorption C 1 (258.77 KiB) Viewed 8 times
- Hi Tek Manufacturing Incorporated Makes Two Types Of Industrial Component Parts The B300 And The T500 An Absorption C 2 (32.94 KiB) Viewed 8 times
- Hi Tek Manufacturing Incorporated Makes Two Types Of Industrial Component Parts The B300 And The T500 An Absorption C 3 (104.42 KiB) Viewed 8 times
Hi-Tek Manufacturing, Incorporated, 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 Incorporated Income
Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,200 units of B300 at a price of $21 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: Direct materials Direct labor Manufacturing overhead Cost of goods sold 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 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 $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 also distributed the
company's manufacturing overhead to four activities as shown below: $ 1,776,200 1,237,590 538, 610 550,000 $ (11,390) Required 1 Required 2 B300 T500 $ 400, 600 $ 162,600 $ 120,700 $ 42,100 Complete this
question by entering your answers in the tabs below. Required 3 Product margin B300 Manufacturing Overhead $ 211,140 138,150 101,600 60,700 $ 511,590 Total $ 563,200 162,800 511,590 $ 1,237,590 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. T500 $ Total B300 90,900 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.) 77 1 ΝΑ 0 Activity T500 62,100 230 1 ΝΑ Total 153,000 307 2 ΝΑ
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.) Product margin B300 T500 $ Total 0
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.) Traditional Cost System Total cost assigned to products Total cost Activity-Based Costing System Direct costs: Indirect costs: Total cost assigned to products Costs not assigned to products: Total cost $ $ Amount Amount B300 B300 0 % of % of Total Amount $ $ T500 Amount 0 T500 Amount 0 % of % of Total Amount Total Amount $ $ Total Amount $ 0 0 0