8.25/33 Question 3 of 3 View Police Show Attemot History Current Attempt in Progress Vaughi Toys & Games, Inc., manufactures specialty toys. Vaughnutes traditional product costing system to sign owerhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durabletos. Vighnassists quality control overhead costs to all products at a rate of 21% of direct labor costs. Its direct labor cost for the month of Aupast for its toddler line of toys is $310,000 in response to repeated requests from its financial vice president Vaughtsmanagement agrees to adopt activity based costing Data relating to the toddler line of toys for the month of August are as follows Ovechead Rate Number of Cost Drivers Used per Activity Activity Cost Pools Cost Drivers Number of pounds 50.70 per pound Materials Inspection Assembly Line Inspection National Toy Association Cortication 56.000 pounds 156.000 tons $0.15 per toy Number of finished toys Retail orders $2.00 per order 600 orders (a) Your wor is correct Compute the quality control overhead cost to be assigned to the toddler toy line for the month of August (1) using the traditional MacBook Pro w E T 2 AT U R K H H S by O 6 G n K F P 2 X 4 A C B M N M b 6 VO command COORD 8.25/33 Question 3 of 3 Your answer is correct Compute the quality control overhead cost to be assigned to the toddler toy line for the month of August (1) using the traditional product costing system (direct labor is the cost driver) and (2) using activity based costing Quality Control Overhead Cost $ 65.100 Traditional costing $ 63.800 Activity based costing e Textbook and Media Attempts: 1 of 3 used (b) By what amount does the traditional product costing system under-cost or over-cost the toddler toy line! overhead by $ The traditional product costing system e Textbook and Media Attempts of 3 used Submit Answer MacBook Pro N. No 5 P U 1 E R K LI J K n G n D L H P 0 O F B B C N T . b 36 36