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Complete this question by entering your answers in the tabs below. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line
Complete this question by entering your answers in the tabs below. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under the Traditional productcosting system and the Activity-based product-costing system. Exercise 5-27 Activity-Based Costing; Quality Control Costs (LO 5-1, 5-2, 5-4) Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 17 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $114,000. In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Required: 1. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems. 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 qualitycontrol costs? By what amount? Complete this question by entering your answers in the tabs below. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-contro costs? By what amount
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