Hough Company Manufactures a Wide Variety of Products

Multiple Choice

Hough Company manufactures a wide variety of products.A high proportion of its indirect costs are batch-level costs,such as acquiring materials,moving materials within the factory,and setting up machines.Hough uses direct labor hours to assign indirect costs to all of its products.How is this use of a traditional product costing system likely to affect the costs of Hough's high-volume and low-volume products?

A) All of its products are undercosted.
B) Its low-volume products are overcosted.
C) All of its products are overcosted.
D) Its high-volume products are overcosted.