Ted's Manufacturing make two products, B and C. They each take 2 direct labor hours and 2 machine hours to produce. A batch of Product B, however, uses twice the number of machine set-ups and required 3 times as many materials requisitions as does Product C. Which of the following is most likely TRUE?

Traditional costing assigns a product cost that is too low to Product C.

The product cost of Product B will be higher under ABC than under traditional costing.

Traditional costing assigns a product cost that is too high to Product B.

The product cost of Product C will be higher under ABC costing than under traditional costing