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

A. the debits to the Manufacturing Overhead account to be understated.
B. Manufacturing Overhead to be overapplied.
C. the ending balance in Work-in-Process to be overstated.
D. the Cost of Goods Manufactured to be understated.


Answer: D

Business

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