ove & BAR 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 three activities: Assembly (allocated to products based on direct labor-hours), Machine Setups (allocated to products based on number of setups), and Material Handling (allocated to products based on the number of material moves). Number of units produced Direct labor hours per unit Number of setups Number of material moves Product A 1,eee units 2 hours 30 setups 400 moves Product B 7,eee units 2 hours se setups 400 moves Product C 2,000 units 2 hours 2e setups 200 moves Based on the data given in the problem, which of the following statements is true? Multiple Choice The traditional cost system would undercost Product C compared to the activity-based costing system ere to search O RI a Based on the data given in the problem, which of the following statements is true? Multiple Choice The traditional cost system would undercost Product C compared to the activity-based costing system The traditional cost system would overcost Product C compared to the activity-based costing system. The traditional cost system could possibly undercost or overcost Product C compared to the activity-based costing system. The traditional cost system would allocate the same amount of overned cost to Product Cas the activity-based costing system ki Brey 6 of 10 Nex