3. When a company shifts from a traditional cost system in which overhead is applied based on direct labor-hours to an activity-based costing system in which there are batch-level and product-level costs, the unit product costs of high-volume products typically decrease whereas the unit product costs of low-volume products typically increase. a. True b. False
When a company shifts for an old-style system of overhead costs of the direct labor costing system the activity-based costing system and the other units of the production of high volume products decreases and a low volume costs of production increases.
