Consider two boomboxes made by Teledor Inc. One boombox is complex to make and is made in many small batches. The other boombox is simple to make and is made in a few large batches. Suppose that Teledor needs the same number of machine$-$hours to make either boombox. If Teledor allocated all overhead costs using machine$-$hours as the only allocation base, how, if at all, would the boomboxes be miscosted? Briefly explain why.

How is the cost hierarchy helpful to Teledor in managing its business?