Beal Company Uses Direct Labor Cost as a Basis for Computing

question 39

Multiple Choice

Beal Company uses direct labor cost as a basis for computing its predetermined overhead rate.In computing the predetermined overhead rate for 2010,the company misclassified a portion of direct labor cost as indirect labor.The effect of this misclassification will be to

• A)understate the predetermined overhead rate.
• B)overstate the predetermined overhead rate.
• C)there will be no effect on the predetermined overhead rate.
• D)Can't tell from the information provided.

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Definitions:

Psychological Retreat

Involves withdrawing into oneself or into an imagined safe space as a means of coping with stress or trauma.

Stimulus Overload

A condition where an individual is overwhelmed by too much sensory information, often leading to stress or difficulty in focusing.

Depersonalizing Others

Treating individuals as if they do not possess personal qualities or individuality, often leading to a lack of empathy and objectification.

Intersectionality

A framework for understanding how aspects of a person's social and political identities combine to create different modes of discrimination and privilege.