Exercise 16 11 sanitary, and nutritious food, Health R Us engages in a high level of quality control. Health R Us assigns its quality control overhead costs to all products at a rate of 17% of direct labor costs. Its direct labor cost for the month Health "RUS, 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. of June for its low-calorie breakfast line is $70,000. 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 calone breakfast line for the month of June are as follows. Activity Cost Pools Inspections of material received In-process inspections FDA certification Cost Drivers Number of pounds Number of servings Customer orders Overhead Rate $0.90 per pound $0.33 per serving $12.00 per order Number of Cost Drivers Used per Activity 5,600 pounds 10.100 servings 450 orders 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 casting. Traditional product costing Activity based costing Qualty-control overhead cost to be assigned $ $ LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: APPUED SKILLS By what amount does the traditional product costing system undercost or overcost the low-calorie breakfast ine? $ LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: APPLIED SKILLS Classify each of the activities as value-added or non-value-added. Activites Inspections of material received In-process inspections FDA certification LINK TO TEXT LINK TO TEXT LINK TO TEXT