Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems. (Round to the nearest dollar)

Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems. (Round to the nearest dollar)

a. Traditional system, which assigns overhead on the basis of direct-labor cost

Quality-control costs = 14.5% x Direct-labor Costs

Quality-control costs assigned to Satin Sheen line = 14.5% x $27,500

= $3,988

b. Activity-based costing

Activity: Pool Rate: Quantity for Satin Sheen: Assigned Cost
Incoming material inspection $11.50 Per Type 12 Types $138
In-Process Inspection 0.14 Per Unit 17.500 Units $2,450
Product Certification 77.00 Per Order 25 Orders $1,925
Total Quality-Control Costs Assigned
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