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| Sanscom Corporation utilizes an activity-based costing system for applying costs to its two products, P and Q. In the assembly department, material handling costs vary directly with the number of parts inserted into the product. Machinery is recalibrated and oiled each weekend regardless of the number of parts inserted during the previous week. Both material handling and machinery maintenance costs are charged to the product on the basis of the number of parts inserted. Due to reengineering of the production process for Product P, the number of insertion parts per finished unit has been reduced. How will the redesign of the production process for Product P affect the activity-based cost of Product Q? A. Material handling cost per Q will remain unchanged, and machinery maintenance cost per Q unit will remain unchanged. B. Material handling cost per Q unit will increase, and machinery maintenance cost per Q unit will remain unchanged. C. Material handling cost per Q will remain unchanged, and machinery maintenance cost per Q unit will increase. D. Material handling cost per Q unit will increase, and machinery maintenance cost per Q unit will increase. |