Exercise 5-27 Activity-Based Costing; Quality Control Costs (LO 5-1, 5-2, 5-4) Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 17 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $98,000. In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Activity Cost Pool Incoming material inspection In-process inspection Product certification Required: Pool Rates Cost Driver Type of material Number of units Per order $ 23.00 per type 0.25 per unit 146.00 per order Quantity of Driver for Satin Sheen 23 types 33,000 units 70 orders 1. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product- costing systems. a. Traditional system, which assigns overhead on the basis of direct-labor cost b. Activity-based costing. 2. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under the Traditional product-costing system and the Activity-based product-costing system. a. Traditional system b. Activity-based costing Assigned Cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount? Traditional system < Required 1 Required 2 >