Answers for A&B please

ng traditional ures its own designed and labeled athletic E17.10 (LO 1, 2, 3), AP Kragan Clothing Company manufactures its own designed a wear and sells its products through catalog sales and retail outlets. P ucts through catalog sales and retail outlets While Kranhas for years used based costing in its manufacturing activities. It has always used traditional costing ing costs to its product lines. Selline costs have traditionally been assigned to Kragans a rate of 70% of direct materials costs. Its direct materials costs for t a t materials costs. Its direct materials costs for the month of March for "high-intensity tensity line of athletic wear are $400.000). The company has decided to extend activity costing to its selling costs. Data relating to the high intensity" line of products for the month of are as follows. to the "high-intensity" line of products for the month of March itional costing in assigning its sell- lly been assigned to Kragan's product lines at pany has decided to extend activity-based Activity Cost Pools Sales commissions Advertising-TV Advertising-Internet Catalogs Cost of catalog sales Credit and collection Cost Drivers Dollar sales Minutes Column inches Catalogs mailed Catalog orders Dollar sales Overhead Rate $0.05 per dollar sales $300 per minute $10 per column inch $2.50 per catalog $1 per catalog order $0.03 per dollar sales Number of Cost Drivers Used per Activity $900,000 250 2,000 60,000 9.000 900.000 Instructions a. Compute the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March (1) using the traditional product costing system (direct materials cost is the cost driver) and (2) using activity-based costing. b. Hy what amount does the traditional product costing system undercost or overcost the "high intensity product line relative to costing under ABC