469,829 views
17 votes
17 votes
In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause ________________ (chapter 6) 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

User Terhorst
by
2.9k points

1 Answer

8 votes
8 votes

Answer:

a) The Cost of Goods Manufactured to be understated

Step-by-step explanation:

From the question we are informed about Marple company, and In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. In this case, The oversight will cause The Cost of Goods Manufactured to be understated. pre-determined overhead rate can be regarded as rate utilize in application of manufacturing overhead as regards

work-in-process inventory. It is usually calculated before the beginning of the period and is usually commence by estimation of activities needed to support operations as regards coming period.

i

User DarenW
by
2.7k points