Crane Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Crane has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Crane's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Crane's "high-intensity" Jine of athletic wear are $390,000. The company has decided to extend activity-based costing to its selling costs (for internal decision-making only). Data relating to the "high-intensity" line of products for the month of March are as follows. Activity Cost Pools Cost Driver's Overhead Rate Number of Cost Drivers Used per Activity Sales commissions Dollar sales $0.05 per dollar sales $900,000 Advertising-TV Advertising-Internet Minutes $300 per minute 200 Column inches $10 per column inch 1,900 Catalogs Catalogs mailed $2.50 per catalog 58,000 Cost of catalog sales Credit and collection Catalog orders Dollar sales $1 per catalog order 8,500 $0.03 per dollar sales $900,000 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 $ eTextbook and Media By what amount does the traditional product costing system understate or overstate the "high-intensity" product line? 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 Selling cost to be assigned eTextbook and Media Activity-based costing By what amount does the traditional product costing system understate or overstate the "high-intensity" product line? Overstate Understate