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Vector Company manufactures a number of different products. In its traditional costing systern, overhead costs are allocated based on a predetermined rate using labor hours.

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Vector Company manufactures a number of different products. In its traditional costing systern, overhead costs are allocated based on a predetermined rate using labor hours. The company recently switched to an activity-based costing system using different cost drivers for each of their two activities. Information is as follows: Job $16 required 22 labor hours and 3 designs. By how much would this job have been over or andercosted under the traditional costing system? a. Undercosted by 596 b. Undercosted by $71.09 C. Overcosted by $96 d. Undercosted by $53.76 e. None of the above

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