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Acme Company produces a wide range of products and applies manufacturing overhead to jobs using a plantwide overhead rate based on direct labor hours. Acme

Acme Company produces a wide range of products and applies manufacturing overhead to jobs using a plantwide overhead rate based on direct labor hours. Acmes use of a single cost driver that reflects overall production volume will tend to systematically:
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Over-cost high-volume products and under-cost low-volume products.
Under-cost high-volume products and over-cost low-volume products.
Over-cost both low-volume and high-volume products.
Under-cost both low-volume and high-volume products.

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