Multiple Choice
Vector Company manufactures a number of different products. In its traditional costing system, overhead costs are allocated based on a predetermined rate. The company recently switched to an activity-based costing system using different cost drivers for each of their two activities. Information is as follows: 
Job #16 required 22 labor hours and 3 designs. By how much would this job have been over or undercosted under the traditional costing system?
A) Undercosted by $96
B) Undercosted by $71.09
C) Overcosted by $96
D) Undercosted by $53.76
Correct Answer:
Verified
Correct Answer:
Verified
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