Question Details

(Solution Download) Hi-Tek Manufacturing Inc. makes two types of industrial component partsA????1the B300 and the T500.


 

 

 

 

 

 

 

Hi-Tek Manufacturing Inc. makes two types of industrial

 

component partsA????1the B300 and the T500. An absorption costing income

 

statement for the most recent period is shown below:

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hi-Tek Manufacturing Inc.

 

Income Statement

  Sales$1,695,400
  Cost of goods

 

sold

1,205,072
  Gross margin490,328
  Selling and

 

administrative expenses

560,000
  Net operating

 

loss

$(69,672)

 


 

 

 

 

 

 

 

 

Hi-Tek produced and sold 60,200 units of B300 at a price of $20

 

per unit and 12,600 units of T500 at a price of $39 per unit. The

 

companyA????1s 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 companyA????1s two product lines is shown below:

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B300

 

T500

 

Total

  Direct

 

materials

$400,000$162,100$562,100
  Direct labor$120,400$42,200162,600
  Manufacturing

 

overhead

480,372
  Cost of goods

 

sold

$1,205,072

 


 

 

 

 

 

 

 

 

The company has created an activity-based costing system to

 

evaluate the profitability of its products. Hi-TekA????1s ABC

 

implementation team concluded that $52,000 and $104,000 of the

 

companyA????1s 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 companyA????1s manufacturing overhead to four activities

 

as shown below:

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

Activity

 

  Activity Cost Pool

 

(and Activity Measure)

 

Overhead

B300T500Total
  Machining

 

(machine-hours)

$201,432

 

    

 

90,300  

62,300

 

152,600  

  Setups (setup

 

hours)

118,440

 

    

 

72  

 

210  

282
  Product-sustaining

 

(number of products)

100,400

 

    

 

1  

12
  Other

 

(organization-sustaining costs)

60,100

 

    

NANANA
  Total manufacturing

 

overhead cost

$480,372

 

    

 


 

 

 

 

 

 

 

 

Required

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

Compute the product margins for the B300 and T500 under the

 

companyA????1s traditional costing system. (Round your

 

intermediate calculations to 2 decimal places and final answer to

 

the nearest whole dollars.)

 

 

      

 

 

 

 

 

 

 

 

 

 

 

 

2.

 

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.)

 

 

       

 

 

 

 

 

 

 

 

 

 

 

 

3.

 

Prepare a quantitative comparison of the traditional and

 

activity-based cost assignments. (Round your intermediate

 

calculations to 2 decimal places and "Percentage" answer to 1

 

decimal place. (i.e. .1234 should be entered as 12.3) and other

 

answers to nearest whole dollar amounts.)

 

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 08, 2020

PRICE: $15

Solution~000652147654031.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 08, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now