1. Acvity-Based Cosng; Quality Control Costs Urban Elite Cosmecs has used a tradional cost accounng system to apply quality-control costs uniformly to all products at a rate of 14.5% of direct-labour cost. Monthly direct-labor cost for San Sheen makeup is $27,500. In an atempt to more equitably distribute quality-control costs, management is considering acvity-based cosng. The monthly data shown in the following chart have been gathered for San Sheen makeup. Acvity Cost Pool Cost driver Pool Rates Quanty of Driver for San Sheen Incoming material inspecon Type of material $11.50 per type 12 types In-process inspecon Number of units 0.14 per unit 17,500 units Product cerficaon Per order 77 per order 25 orders Required: (1) Calculate the monthly quality-control cost to be assigned to the San Sheen product line under each of the following product-cosng system (Round to the nearest dollar) a. Tradional system, which assigns overhead on the basis of direct-labour cost b. Acvity-based cosng (2) Does the tradional product-cosng system over-cost or under-cost the San Sheen product line with respect to quality-control costs? By what amount