Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity-based costing system. Here are its results.

Traditional Costing ABC Sales revenue $600,000 $600,000 Overhead costs:

Product RX3 $ 34,000 $ 50,000 Product Y12 36,000 20,000

$ 70,000 $ 70,000 Explain how a difference in the overhead costs between the two systems may have occurred.

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