Health'R Us, Inc., uses a traditional product costing system to assign overhead costs uniformly to all its packaged multigrain products. To meet Food and Drug Administration requirements and to assure its customers of safe, sanitary and nutritious food, Health R Us engages in a high level of quality control. Health 'R Us assigns its quality control overhead costs to all products at arate of 17% of direct labor costs. Its direct labor cost for the month of June for its low calorie breakfast line is $74,000. In response to repeated requests from its financial vice president, Health "RUS's manapement agrees to adopt activity-based costing Data relating to the low-calorie breakfast line for the month of June are as follows. Overhead Number of Cost Drivers Activity Cost Pools Cost Drivers Rate Used per Activity Inspections of material received Number of pounds $0.90 per pound 5,700 pounds In process inspections Number of serving $0.33 per serving 10,600 servings FDA certification Customer orders $12.00 per order 490 orders Compute the quality control overhead cost to be assigned to the low calorie breakfast product line for the month of June (1) using the traditional product costing system (direct labor cost is the cost driverland (2) using activity based costing, Activity-based costing Traditional product costing $ Quality control overhead cost to be assigned $ III Compute the quality control overhead cost to be assigned to the low-calorie breakfast product line for the month of June (1) using the traditional product costing system (direct labor cost is the cost driver), and (2) using activity-based costing Traditional product costing Activity-based costing Quality-control overhead cost to be assigned By what amount does the traditional product costing system undercost or overcost the low calorie breakfast line? Classify each of the activities as value-added or non-value-added. Activites Inspections of material received In process inspections By what amount does the traditional product costing system undercost or overcost the low-calorie breakfastlin $ Overcost Undercost Classify each of the activities as value-added or non-value-added. Activites Inspections of material received