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Sant Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 18

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Sant Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 18 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $99,000. 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 makeup. Activity Cost Pool Incoming material inspection Cost Driver Type of material Number of units Per order Pool Kates $24.00 per type Quantity of Driver for Satin Sheen 24 types In process inspection Product certification Required: 0.26 per unit 148.00 per order 75 orders 1. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product costing systems a Traditional system, which assigns overhead on the basis of direct labor cost b. Activity-based costing. 2. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality control costs? By what amount? Complete this question by entering your answers in the tabs below. Help Required 1 Required 2 Calculate the monthly quality control cost to be assigned to the Satin Sheen product line under the Traditional product costing system and the Activity-based product-costing system Traditional system 31 Actuty based costing Assigned Cost Save & Exit Submit

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