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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

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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 $105,000. In an attempt to more equitably distribute quality-control costs, management is considering activity-based been gathered for Satin Sheen makeup. costing. The monthly data shown in the following chart have Quantity of Driver for Satin Shee tivity Cost Pool Incoming material inspection In-process inspection Product certification Cost Driver Pool Rates Type of material 18.00 per type 0.32 per unit 20 types Number of units Per order 40,000 units 141.00 per order 60 orders Required: 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 Required 1 Required 2 Caliculate the monthly quality-control cost to be assigned to the Satin Sheen product line under the Traditional aroducth cost system and the Activity-based product-costing system. Sheen product line under the Traditional product-costing

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