Assume that a company makes only three products: Product A, Product B, and Product C. Currently, the company uses a traditional cost system that relies on plantwide overhead cost allocation based on direct labor-hours. It is considering replacing its traditional cost system with an activity-based costing (ABC) system for internal management purposes. The ABC system would include a total of four activities: Assembly (allocated to products based on direct labor-hours). Machine Setups (allocated to products based on total setup hours), Material Handling (allocated to products based on the number of material moves), and Product Design (allocated to products based on the number of products). Number of units produced Direct labor hours per unit Number of setups Hours per setup Number of material moves Number of products Product A 1,000 units 2 hours 30 setups 5 hours Foo moves 1 product Product B 7,000 units 2 hours 50 setups 3 hours 400 moves 1 product Product C 2,000 units 2 hours 20 setups 5 hours 200 moves 1 product Using the activity-based costing approach, what percent of the company's total Machine Setup activity cost would be allocated to Product C? Multiple Choice 48% Using the activity-based costing approach, what percent of the company's total Machine Setup activity cost would be allocated to Product C? Multiple Choice 48% 38% 35% 25%