Kragan 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 Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's "high-intensity" line of athletic wear are $395,000. 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. Number of Cost Drivers Used per Activity commissions Dollar sales $936,000 290 Activity Cost Cost Overhead Pools Drivers Rate Sales per dollar sales Advertising-TV Minutes $300 per minute Advertising, Column per column Internet inches $19 inch Catalogs Catalogs $2.50 per catalog mailed Cost of catalog Catalog ty per catalog sales orders order Credit and Dollar sales $0.03 sales per dollar collection 2,100 59,800 9,250 $936,000 *(a) 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