Relative to$$ activity$-$based costing$($ABC$),$ the traditional system

over$-$costs

the commercial containers and

under$-$costs

the travel packs.

Part $11$

The traditional system allocates overhead costs solely on

machine hours.

$$Activity$-$based costing$($ABC$)$ recognizes that although commercial containers require

fewer

machine hours per unit than travel$$ packs, they

require

the same proportion of material handling and quality assurance.$$