10

Wildhorse Sauce, Inc. is currently comparing its current use of traditional costing with what results would look like if it had instead implemented Activity-Based Costing (ABC). This company creates two products: regular soy sauce and sodium-free soy sauce. The company will be producing 124800 bottles of regular soy sauce and 108100 bottles of sodium-free soy sauce. Under traditional costing, Manufacturing Overhead (MOH) is allocated at $43160.80 to regular soy sauce and $17482.20 to sodium-free soy sauce. In ABC, MOH is allocated at $41002.62 to regular soy sauce and $19640.38 to sodium-free soy sauce. Which of the following is true? a. Unit cost will be higher for regular soy sauce under ABC than traditional costing. O b. Unit cost will be higher for regular soy sauce under traditional costing than ABC. O c. Unit cost will be higher for sodium-free soy sauce under traditional costing than ABC. O d. Unit cost will be lower for sodium-free sauce under ABC than traditional costing