Coronado, Inc., uses a traditional product costing system to assign 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, Coronado engages

in a high level of quality control. Coronado 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 $$74,000.$ In response to repeated reques its

financial vice president, Coronado's management agrees to adopt activity$-$based costing. Data relating to the low$-$calorie breakfast

line for the month of June are as follows.

$($a$)$

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 cost driver$),$ and $(2)$ using activity$-$based costing.