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Q 17.59: Home Linens manufactures bed sets that include a flat sheet, fitted sheet, pillowcase, and comforter. In the sheet division, it has overhead costs

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Q 17.59: Home Linens manufactures bed sets that include a flat sheet, fitted sheet, pillowcase, and comforter. In the sheet division, it has overhead costs of $92,000, which are allocated equally to flat sheets and fitted sheets. However, fitted sheets take twice as long to produce. Which statement is true about overhead allocation for the two types of sheets under an activity-based costing system? A Flat sheets carries less than its full share of factory overhead. B Overhead allocation cannot be directly related to products. Overhead allocation is fair for both types of sheets. D Fitted sheets carries less than its full share of factory overhead

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