Extracts from cost information of Hebar Corp.: Simple L3 Pack Complex L7 Pack Total
Setup cost allocated using direct labor-hour$19,250 $5,750 $25,000
Setup cost allocated using setup-hours $13,400 $11,600 $25,000
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 of Hebar's setup costs under traditional costing?
A. L7 pack is undercosted by $5,750
B. L3 pack is overcosted by $5,850
C. L3 pack is undercosted by $5,850
D. L7 pack is overcosted by $5,850

Amap from a trade development commission or chamber of commerce can be more useful than google maps for identifying

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