[9] Basing overhead allocation solely on volume: [10] a) will under-cost high-volume products and over-cost low-volume products. b) will over-cost high-volume products and under-cost low-volume products. c) is at the basis of activity-based costing systems. d) is at the basis of traditional costing systems. 1 Mark San Marco Square Company has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Cost Cost Driver Expected Quantity Setup costs 100,000 Number of setups 500 Ordering 40,000 Number of orders 3,200 costs Maintenance 200,000 Machine hours 4,000 Power 20,000 Kilowatt hours 80,000 The following are two of the jobs completed during the year: Job 500 Job 501 Direct materials 1,500 2,000 Direct labour 1,400 2,400 Units completed 100 160 Direct labour hours 100 160 Number of setups 2 8 Number of orders 8 10 Machine hours Kilowatt hours 40 50 60 100 San Marco Square Company's normal activity requires 4,000 direct-labour hours. If San Marco Square Company used activity-based cost drivers to allocate overhead costs, the total cost of Job 500 would be: a) 5,715. b) 5,667. c) 5,415. d) 5,315