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Acme Company manufactures three product lines, XY and Z. Acme operates separate production ines for each product. The estimated annual manufacturing overhead costs and machine

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Acme Company manufactures three product lines, XY and Z. Acme operates separate production ines for each product. The estimated annual manufacturing overhead costs and machine hours associated with each of these production lines are as follows: If Acme applies overhead costs to jobs using a single plantwide rate based on machine hours, which products are over-costed or under-costed? Y and Z are under-costed whereas X is over-costed X and Y are under-costed, wherean Z is over-costed X is under-costed whereas Y and Z are over-costed Z is under-costed wheress X and Y are over-costed None of the above

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