Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Products S5 and CP8 each are assigned $100.00 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.
-According to an ABC system,CP8 is ________ under the traditional system.

A) undercosted
B) overcosted
C) fairly costed
D) accurately costed