Rocky Road Inc. makes some estimates at the beginning of the year. Rocky Road estimated that its total annual fixed overhead costs would total $26,200. Rocky also estimated that its production volume would be 2,300 units of product. Based on these estimates, Rocky computed a predetermined overhead rate that was used to allocate overhead costs to the products made during the year. As predicted, actual fixed overhead costs did amount to $26,200. However, actual volume of production amounted to 2,500 units of product. Based on this information alone:

Multiple Choice

A. The answer cannot be determined from the information provided.

B. Products were costed accurately during the year.

C. Products were overcosted during the year.

D. Products were undercosted during the year.