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*SHOW COMPLETE ANSWERS IN SAME FORMAT PLEASE* Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales
*SHOW COMPLETE ANSWERS IN SAME FORMAT PLEASE*
Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has 1 years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs h traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's "high-intensity" line of athletic wear are $394, 000. The company has decided to extend activity-based costing to its selling costs. Data relating to the "high-intensity" line products for the month of March are as follows. Compute the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March (1) using the traditional product costing system (direct materials cost is the cost driver), and (2) using activity-based costingStep by Step Solution
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