Franklin Manufacturing manufactures two models of windows, bay windows and casement windows. Franklin uses an activity-based costing system. The following information about the activities used to produce the company's products has been provided.MMultiple Choice:

• Undercost the casement windows.

• Overcost the bay windows.

• Undercost both the bay windows and casement windows.

• None of these answers are correct.

Franklin Manufacturing manufactures two models of windows, bay windows and casement windows. Franklin uses an activity- based costing system. The following information about the activities used to produce the company's products has been provided. Category Cost Driver Bay Windows Casement 500 Estimated Cost $125,000 $ 75,000 $ 35,000 $165,000 Unit-level Batch-level Product-level Facility-level 20 Labor hours Inspections Storage Space Machine hours 750 30 3,500 sq feet 9,000 2,100 sq feet 6,000 If bay windows and casement windows require the same amount of direct labor, using labor hours as the allocation base for facility-level costs would