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Setup cost allocated using direct labor-hours Simple L3 Pack Complex L7 Pack Total $19,050 $10,950 Setup cost allocated using setup-hours $30,000 $13,200 $16,800 $30,000 Assurning
Setup cost allocated using direct labor-hours Simple L3 Pack Complex L7 Pack Total $19,050 $10,950 Setup cost allocated using setup-hours $30,000 $13,200 $16,800 $30,000 Assurning that setup - hours is considered a more effective cost drive for allocating setup costs than direct labor - hours. Which of the following statements is true of Habar's setup costs under traditional costing? OAL7 pack is overcosted by $5,850 O B. L7 pack is undercosted by $5,750 OG L3 pack is undercosted by $5,850 OD L3 pack is overoosted by $5,850
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