Products R5 and CP8 each are assigned $100.00 in indirect costs by a traditional costing system. An activity analysis revealed t
hat although production requirements are identical, R5 requires 45 minutes less setup time than CP8. When compared with an ABC system that uses setup time as a driver, CP8 is _____________ under the traditional system, relative to R5 g
- Products R5 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, R5 requires 45 minutes less setup time than CP8.
