View Polides Show Attempt History Current Attempt in Progress Sandhill, 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, Sandhill engages in a high level of quality control. Health "RUs 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 $70,000. In response to repeated requests from its financial vice president, Sandhill'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 Inspections of material received Cost Drivers Number of pounds Number of servings 6,920 pounds $0.90 per pound 50.30 per serving In process inspections 11200 servings FDA certification Customer orders $14.00 per order 420 orders (b) By what amount does the traditional product costing system undercost or overcost the low-calorie breakfast line relative to costing under ABC? The traditional costing system the quality control overhead cost assigned to the low-calorie dessert prodat line by s e Textbook and Media