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View Policies Show Attempthistory Current Attempt in Progress Vaughn Toys & Games, Incinanufactures specialty toys, Vaughn uses a traditional product costing system to assign overhead

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View Policies Show Attempthistory Current Attempt in Progress Vaughn Toys \& Games, Incinanufactures specialty toys, Vaughn uses a traditional product costing system to assign overhead costs uniformly to all products, To meet industry safety standards and to assure its customers of safe and durable toys, Vaughn assigns its quality-control overhead costs to all products at a rate of 21% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $292.000. In resporse to repeated requests from its financial vice president, Vaughn's management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows: Coctipute the quality-control overhead cost to be assigned to the toddier toy line for the nionth of Aueust (1) is:irg the fraditional product costing system (direct labor is the cost driver), and (2) using activity-based costing Attemots: 1 of 3 used (b) By What amount don: the traditional product contine aysteen under-cost or over to the toddier toylize? Thetraditionai product costing system! overthestby 3

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