Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below.Products S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costing system.An activity analysis revealed that although production requirements are identical, S5 requires 45 minutes less setup time than CP8.
-Compared to an activity-based cost system, CP8 is ________ under the traditional system.

A) undercosted
B) overcosted
C) fairly costed
D) accurately costed
E) costed the same