Unformatted text preview: and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company s � manufacturing overhead to four activities as shown below: 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. (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.)Hi-Tek Manufacturing Inc. Income StatementSales$1,768,400Cost of goods sold1,232,611Gross margin535,789Selling and administrative expenses560,000Net operating loss$(24,211)...
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- Spring '08