Question: Exercise 5-27 Activity-Based Costing; Quality Control Costs (LO 5-1, 5-2, 5-4) Urban Elite Cosmetics has used a traditional cost accounting system to apply qualify-control costs

 Exercise 5-27 Activity-Based Costing; Quality Control Costs (LO 5-1, 5-2, 5-4) Urban Elite Cosmetics has used a traditional cost accounting system to apply

Exercise 5-27 Activity-Based Costing; Quality Control Costs (LO 5-1, 5-2, 5-4) Urban Elite Cosmetics has used a traditional cost accounting system to apply qualify-control costs uniformly to all products at a rate of 17 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $98.000 . in an attempt to more equitably distribute qualify-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Required: 1. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following productcosting systems. a. Traditional system, which assigns cverhead on the basis of direct-labor cost. b. Activity based costing. 2. Does the traditional product-costing system owercost 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. Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under the Traditisnal produch-costing system and the Acthilify-based product-costing system. Complete this question by entering your answers in the tabs below. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount

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