View Policies Show Attempt History Current Attempt in Progress Health 'R Us, 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, 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 of June for its low-calorie breakfast line is $69,000. In response to repeated requests from its financial vice president, Health 'R Us's management agrees to adopt activity-based costing. Data relating to the low- calorie breakfast line for the month of June are as follows. Overhead Rate Number of Cost Drivers Used per Activity Activity Cost Pools Cost Drivers Inspections of material received Number of pounds $0.90 per pound 6,100 pounds In-process inspections Number of servings $0.33 per serving 9,700 servings FDA certification Customer orders $12.00 per order 490 orders X Your answer is incorrect. 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 costing. Traditional product costing Activity-based costing Quality-control overhead cost to be assigned $ e Textbook and Media Solution * Your answer is incorrect. By what amount does the traditional product costing system undercost or overcost the low-calorie breakfast line? $ e Textbook and Media Solution Your answer is correct. Classify each of the activities as value-added or non-value-added. Activites Inspections of material received Non-value-added In-process inspections Non-value-added FDA certification Non-value-added e Textbook and Media Save for Later Attempts: 1 of 4 used Submit