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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

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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 number of setups), Material Handling (allocated to products based on the number of material moves), and Product Design (allocated to products based on the number of products). Using the activity based costing approach, what percent of the company's total Product Design activity cost would be aliocated to Product A

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