Coronado, 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, Coronado engages
in a high level of quality control. Coronado assigns its qualitycontrol overhead costs to all products at a rate of of direct labor
costs. Its direct labor cost for the month of June for its lowcalorie breakfast line is $ In response to repeated reques its
financial vice president, Coronado's management agrees to adopt activitybased costing. Data relating to the lowcalorie breakfast
line for the month of June are as follows.
a
Compute the qualitycontrol overhead cost to be assigned to the lowcalorie breakfast product line for the month of June
using the traditional product costing system direct labor cost is the cost driver and using activitybased costing.
