Sedona Hats Manufactures Two Different Types of Hat: Narrow

Sedona Hats manufactures two different types of hat: Narrow Brim and Wide Brim.The company's overhead costs include $72,000 for machining,$48,000 for machine set-ups,and $36,000 for inspections.Sedona produced 15,000 Narrow Brim hats and 60,000 Wide Brim hats.Sedona's new cost accountant has compiled the following information: $\begin{array}{lrr} & \text { Narrow } & \text { Wide } \\& \text { Brim } & \text { Brim } \\\text { Direct labor hours } & 24,000 & 36,000 \\\text { Machine set-ups } & 40 & 80 \\\text { Machine hours } & 6,000 & 18,000 \\\text { Inspections } & 60 & 90\end{array}$
If Sedona Hats uses activity-based costing,which of the following is not true?

A) In a traditional unit-based costing environment,Wide Brim hats (the large volume product) would bear a large fraction of costs that vary with the number of batches but do not vary with the number of units produced.
B) The amount of the machine set-up cost applied to Wide Brim hats is $32,000.
C) The amount of overhead applied to Narrow Brim hats is $48,400.
D) If Sedona Hats has an assembling cost pool,the number of parts would be an appropriate cost driver.
E) The $48,000 for machine set-ups is considered a product-level cost.