Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity-based costing system. Here are its results.
| Traditional Costing | ABC | |
| Sales revenue | 600,000 | 600,000 |
| Overhead costs: | ||
| Product Rx3 | 34,000 | 50,000 |
| Product Y12 | 36,000 | 20,000 |
| $70,000 | $70,000 |
Explain how a difference in the overhead costs between the two systems may have occurred.
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