Answer the Following Questions Using the Information Below

question 4

Multiple Choice

Answer the following questions using the information below:
Cannady produces six products.Under their traditional cost system using one cost driver,SR6 costs $168.00 per unit.An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system.The new cost of SR6 was determined to be $178.00 per unit.
-The total amount of indirect costs assigned to product SR6 using the traditional method is ________ the total amount assigned using ABC.

• A)more than
• B)identical to
• C)less than
• D)None of these answers are correct.