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I was stuck on this question of the homework. Bramble Clothing Company manufactures its own designed and labeled athletic wear and sells its products through

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Bramble Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Bramble's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Bramble's "high- intensity" line of athletic wear are $407,000. The company has decided to extend activity-based costing to its selling costs. Data relating to the "high-intensity" line of products for the month of March are as follows. Overhead Activity Cost Pools Cost Drivers Rate Sales commissions Dollar sales $0.05 per dollar sales Advertising--TV Minutes $300 per minute Advertising-Internet Column inches $10 per column inch Catalogs Catalogs mailed $2.50 per catalog Cost of catalog sales Catalog orders $1 per catalog order Credit and collection Dollar sales $0.03 per dollar sales Number of Cost Drivers Used per Activity $941,000 260 2,200 63.600 8.750 $941,000 Credit and collection Dollar Sales Compute the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March (1) using the traditional product costing system (direct materials cost is the cost driver), and (2) using activity-based costing. Traditional product costing Activity-based costing Selling cost to be assigned $ e Textbook and Media By what amount does the traditional product costing system undercost or overcost the "high-intensity product line? $ e Textbook and Media

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