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Erads hom cot infomaton of Hebar Corp Selup cost alocated using drecd labor-hours Selup cost allocaled using sebup-hours Simple L3 Pack S20,000 $14,100 Complex L7

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Erads hom cot infomaton of Hebar Corp Selup cost alocated using drecd labor-hours Selup cost allocaled using sebup-hours Simple L3 Pack S20,000 $14,100 Complex L7 Pack $7,000 $12,900 Assuming that setp-hours n considered a more efective cost drive for allocating sehup costs than direct labor-hours Which of the following statements is true of Hebar's setup costs under tradional costing? OA L3 pack is undercocted by $5,900 OB L3 pack s overcosted by 5,900- OC L7 pack s overcosted by $5,900 O D. L7 pack s undercosted by $5,800

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