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Ch17 Q9 Show work please thanks Health RusInc. uses a traditional product costing system to assig overhead costs uniformly to all its packaged multigrain products

Ch17 Q9 Show work please thanks image text in transcribed
Health RusInc. uses a traditional product costing system to assig overhead costs uniformly to all its packaged multigrain products to meet Food and Drug Administration requirements and to assure its customers of safe sanitary, and nutritious food. Health Us engages in a high level of quality control Health R Us assigns its quality control overhead costs to all products at a rate of 17% of direct labor costs. Its direct labor cost for the month of June for its low-calorie breakfast line is $72,000 Inresponse to repeated requests from its financial vice president Health Russ management agrees to adopt activity-based costing Data relating to the low-calorie breakfast line for the month of June are as follows. Activity Cost Pools Inspections of material received In-process inspections FDA certification Cost Drivers Number of pounds Number of servings Customer orders Overhead Rate $0.90 per pound $0.33 per serving $12.00 per order Number of Cost Drivers Used per Activity 5.900 pounds 10,000 servings 470 orders Compute the quality control overhead cost to be assigned to the low-calorie breakfast product line for the month of June (1) using the traditional product costing system (direct labor cost is the cast driver), and (2) using activity-based costing Activity-based costing Traditional product costing $ Quality control overhead cost to be assigned S

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