NET CALCULATOR PROXER VERSION Exercise 4-10 (Video) 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 conting in its manufacturing activities, it has always used traditional costing Inging itselling costs to its product line. Selling costs have traditionally been used 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 sigh intensity line of the war w 5401.000 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 Number of Cost Drivers Activity Cost Pools Cost Drivers Rate Used per Activity Sales commissions Dollar Sales $0.05 per dollar sales $943,000 Advertising TV Minutes $300 per minute 250 Advertising-Internet Column inches $10 per column inch Catalogs Catalogs malled $2.50 per catalog 60,800 Cost of catalog sales Catalog orders 51 per Catalog order Credit and collection Dollar sales $0.03 per dollar sales 1943.000 1.900 1.500 Compute the selling costs to be assigned to the high-intensity of thetic wear for the month of March (1) using the traditional product costing item(director is the cost driver), and (2) using activity-based costing Traditional product costing Activity-based costing Selling cost to be assigned 5 LINK TO TERE LINK TO TENT LINK TO TEXT x Your answer is incorrect. Try again. Compute the selling costs to be assigned to the high intensity line of athletic wear for the month of March (1) using the traditional productos cost driver), and (2) using activity-based costing. Traditional product costing Activity based costing Selling cost to be assigned 276500 316358 LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEOI SIMILAR EXERCISE Your answer is partially correct. Try again. By what amount does the traditional product costing system undercost or overcost the "high intensity product line? 196350 Undercost LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEOI SIMILAR EXERCISE