Managerial Accounting:Turbine Aesthetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 18% of direct-labor cost. Monthly direct-labor cost for Satin Sheen coverall is $105,000.

In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen coverall.