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.
