Question

Which of the following statements is correct with respect to machine setup​ costs? A. Since direct material and direct labor information are not​ given, it is impossible to determine if the product lines are being​ over/undercosted. B. If the Digital product line is being overcosted with respect to machine setup​ costs, it is likely that the Analog product line is also being overcosted with respect to machine setup costs. C. Under the current costing​ system, 60% of the machine setup manufacturing overhead costs are applied to the Digital product line. D. Under the activity based costing​ system, 37.5% of the machine setup manufacuring overhead costs are applied to the Analog product line. E. The current costing system is not​ over/undercosting the product lines with respect to machine setup costs.

Answer 1

A. Since direct material and direct labor information are not​ given, it is impossible to determine if the product lines are being​ over/undercosted.

Step-by-step explanation:

The above option is the correct answer to the question asked above regarding to the machine setup costs.