42,000 120,000 Mo A l,o0+ 60%o MOH MOH-6oy, MoH 31,00 tHoyo Mo H-31.3so None of the above Hady Corp. is considering the adoption of an activity-based costing (ABC) system because the managers suspect that their traditional costing system uses direct laborcost as the allocation base for manufacturing overhead cost The production managers decided that costing system distorts the product costs. This company produces and sells only two nroducts X23 Wim and Y75All. Their traditional MOn 7& OOO major activities are Machine setups, Special Processing, and General factory and determined the costs for each activity. They also identified how many setups, MHs, and DLHS each product requires. Product X23 Win Y75AL DM $57.00 S82.00 Units Price 350 475 DEHSunit O 2,0 3 000 2,000) OD The wage rate per hour is: The company collected the data for ABC as follows: S 60.00 Estimaled OH cost Cost Driver or Activity Measure # of setups Machine hours Direct-labor hours Activity Cost Pool Machine setup $38,760/8U 49,500 /120C Special processing General factory 90,240 $178,500 Total Activity Measure #of setups Machine hours X23Win Y75AII 80 120 40 12,000 6,000 000 Relative to the traditionnal costing system, the product cost fof Y75All: Under the ABC system is lower by Under the ABC system is higher by Under the ABC system is lower by Under the ABC system is higher by None of the above per unit. 4.20 per unit. 3.70 per unit. 4.20 3.70 per unit. 2000 44.520/9 TS2 4.135X18000 /GoG 37.1 8.500 20000-1.48 75