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60. A company has 3 product lines and historically utilized the traditional costing system to allocate overhead costs to each product line. Due to significant

60. A company has 3 product lines and historically utilized the traditional costing system to allocate overhead costs to each product line. Due to significant differences in the production processes for the 3 product lines, the company has implemented an activity based costing study and identified the activity based cost for each product

ABC

Tradtional CPU$558$1375$1211

Activity based CPU$485$1585$967

Selling price per unit$650$1450$1300

What decision should be made based on this information?

A The selling price for A and C should increase because the cost per unit was more than the selling price per unit

B The selling price should increase for all 3 products because the cost per unit significantly changed for each product

C The selling price for B should increase because the cost per unit was more than the selling price per unit

D No change should be made to the selling price because the cost per unit did not change significantly for any product

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