Friendly Company provides the following ABC costing information:

Products M5 and A8 each are assigned $100.00 in overhead costs by a traditional costing system. An activity analysis revealed that although production requirements are identical, M5 requires 45 minutes less setup time than A8.

According to an ABC system, A8 is ________ under the traditional cost system.

		accurately costed
		undercosted
		fairly costed
		overcosted