In Computing Its Predetermined Overhead Rate,Stiles Company Inadvertently Left Its

Multiple Choice

In computing its predetermined overhead rate,Stiles Company inadvertently left its indirect labor costs out of the computation.This oversight will cause:

A) Manufacturing Overhead to be overapplied.
B) the Cost of Goods Manufactured to be understated.
C) the debits to the Manufacturing Overhead account to be understated.
D) the ending balance in Work-in-Process to be overstateD.
The omission of an overhead item will cause the application to be less than it should be and Cost of Goods Manufactured will be less than it should be.