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S Weygandt, Managerial Accounting, 8e Help System Announcements CALCULATOR PRINTER VERSION 4 BACK Exercise 4-11 Health R 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 R Us engages in a high level of quality control. Health R Us assigns its quality control over costs to all products at a rate of 17% of direct labor costs. Its direct labor cost for the month of June for its low-calorie breakfast line is $71,500. In response to repeated request: its financial vice president, Health 'R Us's management agrees to adopt activity-based costing. Data relating to the low-calorie breakfast line for the month of June are as follows Overhead Number of Cost Drivers Activity Cost Pools Cost Drivers Rate Used per Activity Inspections of material received Number of pounds $0.90 per pound 6,400 pounds Irrocess Inspections Number of servings $0.33 per serving 9,500 servings FD certification Customer orders $12.00 per order 470 orders pute 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 la t is the cost driver), and (2) using activity-based costing. Traditional product costing Activity-based costing uality control overhead cost to be assigned LINK TO TEXT LINK TO TEXT By what amount does the traditional product costing system undercost or overcost the low-calorie breakfast line? U TO TEXT I search S Weygandt, Managerial Accounting, de Help System Announcements CALCULATOR PRINTER VERSION BACK Exercise 4-11 Health R 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 R Us engages in a high level of quality control. Health R Us assigns its quality control over costs to all products at a rate of 17% of direct labor costs. Its direct labor cost for the month of June for its low-calorie breakfast line is $71,500. In response to repeated requests its financial vice president, Health 'R Us's management agrees to adopt activity-based costing. Data relating to the low-calorie breakfast line for the month of June are as follows. Overhead Number of Cost Drivers Activity Cost Pools Cost Drivers Rate Used per Activity Inspections of material received Number of pounds $0.90 per pound 6,400 pounds Irocess Inspections Number of servings $0.33 per serving 9,500 servings FDA certification Customer orders $12.00 per order 470 orders pute 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 la t is the cost driver), and (2) using activity-based costing. Traditional product costing Activity-based costing uality control overhead cost to be assigned $ LINK TO TEXT LINK TO TEXT LINK TO TEXT By what amount does the traditional product costing system undercost or overcost the low-calorie breakfast line? $ LINK TO TEXT