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Health's Us. Inc, uses a traditional product costing system to assign overhead costs uniformly to all its packaged multigrain products. To meet Food and Drug

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Health's 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' 5 Us. engages in a high level of qualty control. Health 'S Us assigns its quality-control cverhead costs to all products at a rate of 17 \% of direct labor costs. Its direct labor cest for the month of June for its lowicalorie brealdast line is $65,000. In response to repeated requests from its financial vice president. Health'S Us's management asrees to adopt activity-based costing. Data relating to the lowcalorie breakfast line for the month of June are as follews 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 laber cost is the cost driver), and (2) using activity-based costing. Compute the qualityccontrol overnead cost to be assigned to the tow'calorie breaktast productine for the month of june [] using the traditional product costing system (direct labor cost is the cost driver), and (2) using activity-based costing. By what amount does the traditional product costing system understate or overstate the low-caloric breakfast line

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