Consider the information given on two products and their usage of two overhead activities (setups and inspection):

	Deluxe Mowers	Economy Mowers
Units produced	10,000	40,000
Setup hours	1,000	500
Inspection hours	500	500
Machine hours	300	1,500

Suppose that machine hours are used to assign all overhead costs to the two products. Which of the following is the best answer?

A) Deluxe mowers are undercosted, and regular mowers are overcosted.

B) Deluxe mowers are overcosted, and regular mowers are undercosted.

C) Deluxe mowers and regular mowers are accurately costed.

D) Using inspection hours to assign overhead costs is the best allocation approach.