At the Beginning of 2013, Barcroft Co

Multiple Choice

At the beginning of 2013, Barcroft Co. estimated that its total annual fixed overhead costs would amount to $25,000. Further, Barcroft estimated that its volume of production would be 2,000 units of product. Based on these estimates, Barcroft computed a predetermined overhead rate that was used to allocate overhead costs to the products made in 2013. As predicted, actual fixed overhead costs did amount to $25,000. However, actual volume of production amounted to 2,200 units of product. Based on this information alone:

A) Products were costed accurately in 2013.
B) Products were overcosted in 2013.
C) Products were undercosted in 2013.
D) The answer cannot be determined from the information provided.