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This is question Lion's, Inc. produces several products. One ofitheir products _(Widget-A) costs $250/unit under their traditional cost system using direct labor as a cost

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Lion's, Inc. produces several products. One ofitheir products _(Widget-A) costs $250/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 Widget-A was determined to be $170/unit. Which of the following statements is true regarding this change in the cost: 0 WidgetA will now command a higher sales price 0 Widget-A's cost under the new system depends on the adequacy and quality of the estimated sales and sales revenue used by the new system Q Widget-A will be assigned the same percentage of total overhead 0 Some of Lion's other products may be assigned a larger share of overhead costs 0 None of the above are true

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