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Urban Ente Cosmetics has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 16 percent

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Urban Ente Cosmetics has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 16 percent of direct labor cost. Monthly direct-labor cost for Satin Sheen makeup is $113,000 in an attempt to more equitably distribute quality control costs, management is considering activity based costing the monthly data shown in the following chart have been gathered for Satin Sheen makeup. Activity Cast Pool Incomintaterial inspection In process inspection Product certification Co Drvent Type of materii Number of units Per order Pel Rate $ 26. per type 10.2 per unit 145.00 per order Quanti Driver RON Shen 29 types ASOMA 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? Required 1 Required 2 Calculate the monthly quality control cost to be assigned to the Satin Sheen product line under the Traditional product-costing system and the Activity based product-costing system. Assigned Cost Traditional system b Activity-based costing ROL Required 2 > N Required 1 Lequired 2 Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality control casts? By what amount? Traditional system by

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