Katrina Warren | 10/01/20 11:27 Test: Test #2 Chapters 4-5 Time Remaining: 01:58:07 Submit This Question: 2 Pts 5 Of 50 (3 Complete) This Test: 100 Pts Pos Question Help Extracts From Cost Information Of Hebar Corr.: Simple L3 Pack Complex L7 Pack Total Setup Cost Allocated Using Direct Labor-Hours $19,200 $8,800 $28,000 Setup Cost Allocated Using

 

 

 

 

 

 

 

Test: Test #2 Chapters 4-5 This Question: 2 pts Extracts from cost information of Hebar Corp.: 5 of 50 (3 complete) katrina warren & 10/01/20 11:27 P Time Remaining: 01:58:07 Submit This Test: 100 pts pos Question Help Setup cost allocated using direct labor-hours Simple L3 Pack $19,200 Complex L7 Pack $8,800 Total $28,000 $13,300 $14,700 $28,000 Assuming 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 c Setup cost allocated using setup-hours Hebar's setup costs under traditional costing? OA. L7 pack is overcosted by $5,900 OB. L3 pack is undercosted by $5,900 OC. L7 pack is undercosted by $5,800 OD. L3 pack is overcosted by $5,900