Vanguilder combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. Activity-based costing would likely show that with Vanguard's current procedures that:
all of the company's products are undercosted.
the company's high-volume products are undercosted.
all of the company's products are overcosted.
the company's high-volume products are overcosted.
the company's low-volume products are overcosted.
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