31. (4 points) Cost information about Rebar Corp's two products included the following: Products Simple L3 Setup cost allocated using direct labor-hours $18,750 Complex L7 $6,250 Total $25,000 Setup cost allocated using setup-hours $13,200 $11,800 $25,000 Which of the following statements is true about Rebar's allocation of Setup Costs using traditional costing? Circle your answer. a. Simple L3 is undercosted by $5,550 b. Simple L3 is overcosted by $5,550 c. Complex L7 is overcosted by $5,550