Question 6 1 pts Packer's, Inc. produces several products. One of their products (Footballs) costs $200/unit under their traditional cost system using direct labor as a cost driver to allocate overhead costs. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of the Football was determined to be $150/unit. Which of the following statements is true regarding this change in the cost: A football will now command a higher sales price Football's cost under the new system depends on the adequacy and quality of the estimated sales and sales revenue used by the new system A football will be assigned the same percentage of total overhead Some of Packer's other products may be assigned a larger share of overhead costs All of the above are true Previous Next