Question: Standard Complex A7 Total A3 Pack Pack Setup cost allocated using direct labor-hours $19,700 $7,300 $27,000 Setup cost allocated using setup- hours $13,700 $13,300 $27,000
Standard Complex A7 Total A3 Pack Pack Setup cost allocated using direct labor-hours $19,700 $7,300 $27,000 Setup cost allocated using setup- hours $13,700 $13,300 $27,000 Assuming that setup-hours is considered a more effective cost driver for allocating setup costs than direct labor-hours. Which the following statements is true of Bench Corp's setup costs under traditional costing? O A3 pack is undercosted by $6,000 O A7 pack is undercosted by $5,900 O A7 pack is overcosted by $6,000 O A3 pack is overcosted by $6,000
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