Consider the information given on two products and their activity usage: Laser Printer Inkjet Printer Units produced 1,000 4,000 Setup hours 800 400 Inspection hours 500 500 Machine hours 200 1,000 Suppose that machine hours are used to assign all overhead costs to the two products.

Select the best answer from the following:

a. Laser printers are overcosted, and inkjet printers are undercosted.

b. Laser printers and inkjet printers are accurately costed.

c. Laser printers are undercosted, and inkjet printers are overcosted.

d. Using inspection hours to assign overhead costs is the most accurate approach.

e. None of these.