Answered step by step
Verified Expert Solution
Question
1 Approved Answer
CHERAS Exercise 4-10 (Video) Kragan Clothing Company manufactures its own designed and labeled athletic wear and ses its products through catalog sales and retail outlets.
CHERAS Exercise 4-10 (Video) Kragan Clothing Company manufactures its own designed and labeled athletic wear and ses its products through catalog sales and retail outlets. While Kregar has for your weddi-beset costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionely been to gens product a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's high-intensity line of athletic wear 401,000. The company has decided to death based costing to its selling costs. Data relating to the high-intensityine of products for the month of March are as follows Overhead Number of Cost Drivers Activity Cost Pools Cost Drivers Rate Used per Activity Sales commissions Dollar sales $0.05 per dollar sales $925,000 Advertising-TV Minutes $300 per minute 270 Advertising-Internet Column inches $10 per column inch 2,200 Catalogs Catalogs mailed $2.50 per catalog 59,600 Cost of catalog sales Catalog orders $1 per catalog order 8.550 Credit and collection Dollar sales $0.03 per dollar sales 1926,000 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 (erea materia con le recomww) and (2) using activity-based costing Traditional product costing Activity-based costing Selling cost to be assigned WILARININ LINK TO TEXT LINK TO TEXT LINK TO TEXT By what amount does the traditional product costing system undercost or overcost the high intensity product line? $ Click If you would like to show Work for this questions Open Shok Wack LINK TO TEXT LINK TO TEXT LINK TO TEXT Question Attempts Unlimited
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started