1.Can you help me figure out traditional system& Activity -based costing assigned cost?

2.Does the traditional product costing system overcost or undercost the satin sheen product line with respect to quality control costs? By what amount?

Ex: Traditional system ______ by ___________

Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 15 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $102,000. In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup.

Activity Cost Pool Cost Driver Pool Rates Quantity of Driver for Satin Sheen

Incoming material inspection Type of material$ 27.00per type 27types

In-process inspection Number of units 0.29per unit 37,000units

Product certification Per order1 54.00per order 45orders

Required:

1.Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems.

a.Traditional system, which assigns overhead on the basis of direct-labor cost.

b.Activity-based costing.

2.Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount?