One type of speaker is complex to make and is produced in many batches, whereas another one is simple to make and produced in few batches. Teledor needs the same number of machine hours to make each type of speaker and it allocates all overhead costs using machine hours basis.    (a) Could you identify if the speakers would be miscosted? Briefly explain why?   (b) How is the cost hierarchy helpful to Teledor in managing its business?

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