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Cheezy Snack produces ricecrackers, wheatcrackers, and corn crackers on three different production lines in the same manufacturing facility. Currently Cheezy uses a single plantwide overhead

Cheezy Snack produces ricecrackers, wheatcrackers, and corn crackers on three different production lines in the same manufacturing facility. Currently Cheezy uses a single plantwide overhead rate to allocate its $3,119,000 of annual manufacturing overhead. Of thisamount, $800,000 is associated with the rice crackerline, $1,419,000 with the wheat crackerline, and $900,000 with the corn cracker line.Cheezy's plant is currently running a total of 20,000 machinehours: 6,400 in the rice crackerline, 8,600 with the wheat crackerline, and 5,000 with the corn cracker line.Cheezy's considers machine hours to be the cost driver of MOH costs. Whichproduct(s) are being under costed due to the use of a singleplant-wide overhead allocationrate?

A.

Just the Wheat Cracker

B.

Just the Corn Cracker

C.

Just the Rice Cracker

D.

Both the Wheat Cracker and the Corn Cracker

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