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Schiff Company produces seven products. One of their products, PQ-6, costs $240.00 per unit under their traditional cost system using one cost driver. An analysis

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Schiff Company produces seven products. One of their products, PQ-6, costs $240.00 per unit under their traditional cost system using one cost driver. 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 PQ-6 was determined to be $190.00 per unit. Given this change in the cost: Some of Schiff's other products may be assigned a larger share of overhead costs PQ-6 will now command a higher sales price PQ-6's cost under the new system depends on the adequacy and quality of the estimated sales and sales revenue used by the new system PQ-6 will be assigned the same percentage of total overhead None of the above statements are true

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