A firm allocates indirect costs using total units produced as the allocation base in a single plant-wide overhead rate. Which of these statements are true?

1. High volume products will tend to be under-costed

2. Low volume products will tend to be under-costed

3. Highly complex products will tend to be under-costed

Group of answer choices

Statement 1 only

Statement 2 only

Statement 3 only

Statement 1 and 3 only

Statement 2 and 3 only