Towler Inc. manufactures products J and K, applying overhead on the basis of labor hours. J, a low-volume product, requires a variety of complex manufacturing procedures. K, on the other hand, is both a high-volume product and relatively simplistic in nature. What would an activity-based costing system likely disclose about products J and K as a result of Towler’s current accounting procedures? None of the answers is correct. J is undercosted and K is overcosted J, K are overcosted J, K are undercosted K is undercosted and J is overcosted