Pinnacle Printing Company manufactures a variety of different products-from commercial to catalogs, to wedding invitations. The company has total overhead cost of $4,000,000 attril to five departments in the following classifications: Depreciation $925,000; Utilities $1,650,00 Property Tax $200,000; Insurance $70,000; Equipment Rentals $165,000; Supplies $440,000; II labor $550,000. The company applies overhead using a traditional method, with the identifie as machine hours. Frequently, the company incurs unfavorable production volume variance underapplication of overhead. If Pinnacle endeavored activity based costing: Select the correct option and Submit. Its utilities cost of $1,650,000 would likely be eliminated since it would be reclassified as direct under ABC. Its overhead cost per unit would be better representative of the variety of processes to accommodate specifics of each product offering. Its total cost of overhead would be less than $4,000,000 since the overhead cost per unit would decrease for some products and increase for others. It would not be able to identify economies of scale that could potentially be the basis of competitive advantage