Exercise 17-10 K: e an o hin Company manufactures its awn designed drid ab d sllel L we ld se s i s pr ducts rough Lala D sales d reldl uut els while 'ayan has r years use aLLivity based cosun n its tri nu d unny ec "L es I has ways used traditional costing in assigning its se ing costs to its product lines. Sell ng costs have tradit na y bc n ssigned to Kr gan's product lines at a ate of 70% o direct materials costs. Its direct materia s costs or the month o March or ragan's high irntensity" line of athletic: wear are $4D8,D. The comipiany has dced to extend activity-tsed csting to its slling casts. Data relating ta the "high-intensity" Ine of praducts for thr month oMarch are as fcllws. Overhcad Rate Number of Cost Drivers Used per Activity Activity Cost Pools Cost Drivers Dollar sales Minutes Saltes carn u.DS er dolla sales S30D per minuto Adivert sing-Intemet Column Inches S10 per column Inch Catalogs mailed $2.5D per catalng Catalog orders Dollar sales 2,000 64.500 9,450 941,000 Cost of catalog sales Credit and collection si per catalog order s0.03 per dollar sales Compute the selling costs to be assigned to the "high-intensity" llne of athletic wear to the month of Ma using the traditional product costing system sairect materials costis e cost driver), and (2 using activity-based costing Traditional product costing Activity-based costing Sclling cost to be assigncd By what amount docs the traditional product costing system undcrcost or ovcrcost the "high Intensity product line