RCES CALCULATOR INTER VERSION BACK Exercise 16-11 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 Rus assigns its qually-control overhead 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 $65,000. In response to repeated requests from its financial vice president, Health Rus'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 5,500 pounds In-process inspections Number of servings $0.33 per serving 9,500 servings FDA certification Customer orders $12.00 per or 400 orders Eudy Compute 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 casting system (direct labor cost is the cost driver), and (2) using activity-based costing. Traditional product costing Activity-based costing Quality control overhead cost to be assigned LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO, APPLIED SKILLS By what amount does the traditional product costing system undercost or overcost the low-calorie breakfast line? . VIDEO APPLIED SKILLS LINK TO TEKT LINK TO TEXT LINK TO TEXT Classify each of the activities as value-added or non-value-added. Activites Inspections of material received . In-process Inspections . MacBook Pro VO 808 12 FS & -process inspections FDA certification Number of servings Customer orders $0.33 per serving $12.00 per order CALCULATOR PRINTER VERSION 9,500 servings 400 orders BACK Compute 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 labor cost is the cost driver), and (2) using activity-based costing Traditional product costing Activity-based costing Quality control overhead cost to be assigned LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO APPLIED SKILLS By what amount does the traditional product costing system undercost or overcost the low-calorie breakfast line? LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO APPLIED SOLLS Classify each of the activities as value-added or non-value-added. Activites Inspections of material received In-process inspections FDA certification VIDEO APPLIED SKILLS LINK TO TEXT LINK TO TEXT LINK TO TEXT SUBMIT ANSWER SAVE POR LATER Question Attempts: 0 of 3 used MacBook Pro SAL 888 12 go FS 20