Coronado Toys & Games, Inc. manufactures specialty toys. Coronado uses a traditional product costing system to assign overhead

costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Coronado

assigns its quality$-$control overhead costs to all products at a rate of $20\%$ of direct labor costs. Its direct labor cost for the month of

August for its toddler line of toys is $$343,000.$ In response to repeated requests from its financial vice president, Coronado's

management agrees to adopt activity$-$based costing. Data relating to the toddler line of toys for the month of August are as follows:

Compute the quality$-$control overhead cost to be assigned to the toddler toy line for the month of August $(1)$ using the traditional

product costing system $($direct labor is the cost driver$),$ and $(2)$ using activity$-$based costing.

Quality$-$Control Overhead Cost

Traditional costing

Activity$-$based costing