Urban Elite Cosmetics has used a traditional cost accounting system to apply qua

Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 14.5 percent of direct-labor cost. Monthly direct-labor cost for Satin  Sheen makeup is $27,500. In an attempt to more equitably distribute quality-control costs, management  is considering activity-based costing. The monthly data shown in the following chart have been gathered  for Satin Sheen makeup.
Activity Cost Pool    Cost Driver        Pool Rates      Quantity of Driver
Satin Sheen 
material inspection .. Type of material . $11.50 per type  12 types 
In-process inspection … Number of units ….14 per unit . 17,500 units 
Product certification …… Per order ……. 77.00 per order .. 25 orders 
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.) 
Traditional system, which assigns overhead on the basis of direct-labor cost. 
Activity-based costing.
Does the traditional product-costing system overcost or undercost the Satin Sheen product line  with respect to quality-control costs? By what amount?
Hilton, Ronald. Managerial Accounting: Creating Value in a Dynamic Business Environment (p. 203). McGraw-Hill Higher Education.
ISBN-13: 978-1260566390