Which of the following statements accurately describes a potential drawback of using a plantwide overhead rate based on machine hours in a job-order costing system, as described for Xania Inc.?
A) It leads to overallocation of overhead costs to high-volume production jobs.
B) It provides accurate costing for all types of jobs in the production process.
C) It simplifies the allocation process and reduces the need for multiple rates.
D) It ensures consistent and precise allocation of overhead costs across all departments.