Question: Need help with this one. Exercise 4-10 (Video) (Part Level Submission) Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its

Need help with this one. Need help with this one. Exercise 4-10 (Video) (Part Level Submission) Kragan

Exercise 4-10 (Video) (Part Level Submission) Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan's product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan's "high-intensity" line of athletic wear are $400,000. The company has decided to extend activity-based costing to its selling costs. Data relating to the "high-intensity line of products for the month of March are as follows. Overhead Rate Activity Cost Pools Cost Drivers Number of Cost Drivers Used per Activity Sales commissions Dollar sales $0.05 per dollar sales $900,000 Advertising-TV Minutes $300 per minute 250 Column inches $10 per column inch 2,000 Advertising-Internet Catalogs Catalogs mailed $2.50 per catalog 60,000 Cost of catalog sales Catalog orders 9,000 $1 per catalog order $0.03 per dollar sales Credit and collection Dollar sales $900,000 (a) | Your answer is partially correct. Try again. Compute the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March (1) using the traditional product costing system (direct materials cost is the cost driver), and (2) using activity-based costing. Traditional product costing Activity-based costing Selling cost to be assigned 280000 280000 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Attempts: 4 of 15 used SAVE FOR LATER SUBMIT ANSWER (b)

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