Sheffield Toys & Games, Inc. manufactures specialty toys. Sheffield uses a traditional product costing system to assign

overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and

durable toys, Sheffield assigns its quality$-$control overhead costs to all products at a rate of $20\%$ of direct labor costs.

Its direct labor cost for the month of August for its toddler line of toys is $$343,000.$ In response to repeated requests

from its financial vice president, Sheffield's management agrees to adopt activity$-$based costing. Data relating to the

toddler line of toys for the month of August are as follows:

$($a$)$

Compute the quality$-$control overhead cost to be assigned to the toddler toy line for the month of August $(1)$ using

the traditional product costing system $($direct labor is the cost driver$),$ and $(2)$ using activity$-$based costing.

Quality$-$Control Overhead Cost

Traditional costing