Exercise 5-29 Activity-Based Costing: Quality Control Costs (LO 5-1, 5-2, 5-4, 5-5) Rainbow Spray Paints, Inc. has used a traditional cost accounting system to apply quality- control costs uniformly to all products at a rate of 16 percent of direct-labor cost. Monthly direct-labor cost for the enamel paint line is $109,000. In an attempt to more equitably distribute quality-control costs, Rainbow is considering activity-based costing. Thee monthly data shown in the following chart have been gathered for the enamel paint line Quantity of Driver for Enamel Paint Activity Cost Pool Incoming material Cost Driver Type of Pool Rates $22.00 Per type 24 types inspectiorn material Number of In-process inspectionunits 0.28 unit 44,000 units Product certification 49.00 order Per order 60 orders Required 1. Calculate the monthly quality-control cost to be assigned to the enamel paint 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 Assigned Cost Traditional system Activity-based costing