CMA, adapted e 5-27 Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs un-Activity-8ased Costing: s at a rate of 14.5 percent of direct-labor cost. Monthly direct-labor cost for Satin up is $27.500. In an attempt to more equitably distribute quality-control costs, management (Lo 5-1,5-2,5-4) Sheen makeup is $27,500. In an atte is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Quantity of Driver for Satin Sheen Cost Driver Pool Rates Activity Cost Pool 12 types $11.50 per type. Type of material. ncoming material inspection 17,500 units 4 per unit .. 7700 per ordr.. Number of units Per order.. In-process inspection Product certification 25 orders Activity-Based Costing and Management Chapter 5 1. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems. (Round to the nearest dollar.) 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? Required: CMA, adapted) Kentaro Corporation manufactures Digital Video Recorders (DVRs) in its Tokyo plant. The follow costs are budgeted for January. (Yen is the Japanese monetary unit.) Raw materials and ^^