Fortner Technologies manufactures products X and Y, applying overhead on the basis of labor hours. X, a low-volume product, requires a variety of complex manufacturing procedures. Y, on the other hand, is both a high-volume product and relatively simplistic in nature. What would an activity-based costing system likely disclose about products X and Y as a result of Fortners current accounting procedures?

	X	Y
A.	Undercosted	Undercosted
B.	Undercosted	Overcosted
C.	Overcosted	Undercosted
D.	Overcosted	Overcosted
E.	Costed correctly	Costed correctly