Crane Toys & Games Inc. manufacturer specialty toys. Crane uses a traditional product costing system to assign overhead costs to all products at a rate of 22% of direct labor costs. Its direct labor costs for the month of August for its toddler line of toys is $338,000. In response to repeated requests from the financial vice president, Crane management agrees to adopt activity based costing. Data relating to the toddler line of toys for the month of August are as follows:

Activity Cost Pools Cost Drivers Overhead Rate # of cost drivers per activity

Materials Inspection Number of pounds $0.70 per pound 51,000 pounds

Assembly Line Inspection Number of finished toys $0.16 per toy 213,000 toys

National Toy Assc.Certification Retail orders $2.00 per order 1,100 orders

B- By what amounts does the traditional product costing system under-cost or over-cost the toddler toy line?

The traditional product costing system _________ overhead by $___________.