costing in its manuracturing activities, nas aways use tradicionar costing in assigning its selling costs to its product lines. Selling costs navetrarcionany been assgned to Kragens producties 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 are $410,000. The company has decided to extend activt based costing to its selling costs. Data relating to the "high-intensity line of products for the month of March are as follows. Activity Cost Pools Sales commissions Advertising-TV Advertising-Internet Catalogs Cost of catalog sales Credit and collection Cost Drivers Dollar sales Minutes Column inches Catalogs mailed Catalog orders Dollar sales Overhead Rate $0.05 per dollar sales $300 per minute $10 per column inch $2.50 per catalog $1 per catalog order $0.03 per dollar sales Number of Cost Drivers Used per Activity $925,000 260 2,000 59,000 9,150 $925,000 Your answer is correct. 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 (direct materials cost is the cost driver) and (2) using activity-based costing. Traditional product costing Activity-based costing Selling cost to be assigned 287000 328650 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO, SIRTLAR EXERCISE Attempts: 1 of 15 used (b) By what amount does the traditional product costing system undercost or overcost the "high-intensity product line