2 7.14 points Exercise 5-27 Activity-Based Costing; Quality Control Costs (LO 5-1, 5-2, 5-4) 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 $106,000. 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 eBook Incoming material inspection In-process inspection Product certification Cost Driver Type of material Number of units Per order References Pool Rates $ 19.00 per type 0.25 per unit 143.00 per order Quantity of Driver for Satin Sheen 21 types 41,000 units 65 orders 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