Determine the error in the prediction of X1 batch-level costs resulting from the use of only machine hours. Indicate whether the use of only machine hours results in overpredicting or underpredicting the batch-level costs of product X1

Multiple Cost Drivers Scottsdale Ltd. manufactures a variety of high-volume and low-volume products to customer demand. Presented is information on 2013 manufacturing overhead and activity cost drivers.

Unit	$ 500,000		10,000 machine hours
Batch	100,000		500 customer orders
Product	200,000		25 products

Product X1 required 2,000 machine hours to fill 10 customer orders for a total of 8,000 units