Company A's product mix consists of two distinct product lines: Line 1 and Line 2. Under the current costing system, manufacturing overhead is applied to each line based on machine hours. Machine setup costs account for the majority of manufacturing overhead costs and are estimated to be $75,000. The controller has suggested to management that an activity-based costing system be analyzed and has determined that the number of machine setups drives the total machine setup costs. The following information was compiled for the analysis: Line 1 Line 2 Budgeted number of units to be produced 750 500 Budgeted number of machine hours for production level 1,500 2,500 Budgeted number of machine setups for production 30 50 level Which of the following statements is correct concerning the analysis of the ABC system for Company A with respect to machine setup costs? O ABC uncovers that the Line 2 product line was overcosted by the traditional costing system. O ABC uncovers that the Line 1 product line was undercosted by the traditional costing system. O ABC provides no additional cost allocation benefit to Company A. O Since direct material and direct labor unit costs are not given, the analysis cannot be completed