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Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton's two divisions are available below. Note: All

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Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton's two divisions are available below. Note: All of Morton Company's products are sold in competitive markets. - Manufacturing overhead is allocated to production based on the amount of direct labor cost. Morton has determined that its total manufacturing overhead cost of $550,000 is a mixture of batch-level costs and product line costs. Morton has assembled the following information concerning the manufacturing overhead costs, the annual number of production batches, and the number of product lines in each division. Which ONE of the following statements is MOST CORRECT? If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Salt Division would have decreased by $285,000. If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Missile Division would have decreased by $25,000. If the activity-based costing system had been used in the most recent year in place of the traditional overhead allocation technique, profit for the Missile Division would have increased by $25,000. If the activity-based costing system had been used in the most recent ycar in place of the traditi nal overhead allocation technique, profit for the Salt Division would have increased by $285,000 If the activity-based costing system had been used in the most recent year in place of the traditionat avertiead allocation technique, profit for the Missile Division would have increased by $260,000. If the activity-bred costing system had been used in the most recent vear in place of the traditional overhead allocation technique, profit for the Missile Division would have decreaved by $200.000

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