Show Attempt History Current Attempt in Progress Trendy Toys & Games, Inc. manufactures specialty toys. Trendy 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, Trendy assigns its quality control overhead costs to all products at a rate of 19% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $307,000. In response to repeated requests from its financial vice president, Trendy's management agrees to adopt activity-based costing, Data relating to the toddler line of toys for the month of August are as follows: Number of Cost Overhead Drivers Used Activity Cost Pools Cost Drivers per Activity Materials Inspection pounds Number of pounds $0.70 per pound 53,000 Assembly Line Inspection Number of finished toys $0.15 per toy 116,000 toys National Toy Association Certification Retail orders $2.00 per order Rate 800 orders (b) By what amount does the traditional product costing system undercost or overcost the toddler toy line? The traditional product costing system overhead by $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (c) Classify each of the activities as value-added or not-value added. Materials Inspection Trendy Toys is exploring options to help reduce overhead costs especially for non-value added activities. One of the proposals is from the National Toy Association. For an additional $1 per order, this entity could perform additional safety checks that would reduce the assembly line inspection costs by $0.01 per toy. Compute the overhead cost assigned to the toddler toy line for the month of August using activity-based costing under this proposal. Overhead cost assigned $ Should Trendy Toys accept the National Toy Association's offer? Trendy Toys accept this offer. e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Question 3 of 5 1/4 ITI (c) Classify each of the activities as value-added or not-value added. Materials Inspection Assembly Line Inspection National Toy Association e Textbook and Media Save for Later Attempts: 0 of 5 used Submit