Multiple Cost Drivers Scottsdale Ltd. manufactures a variety of high-volume and low-volume products to customer demand. Presented is information on 2009 manufacturing overhead and activity cost drivers.

Level	Total Cost	Units of Cost Driver
Unit	$300,000	20,000 machine hours
Batch	300,000	1,000 customer orders
Product	100,000	50 products

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

(d) 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.

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