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Extracts from cost information of XYZ Corp.: Assuming that setup-hours is considered a more
effective cost drive for allocating setup costs than direct labor-hours. Which of the following
statements is true of XYZ's setup costs under traditional costing? Simple Pack is under-costed by
$4,680 Complex Pack is under-costed by $4,650 Simple Pack is over-costed by $6,150

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