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:

Behaviors

The actions or reactions of individuals or groups in response to external or internal stimuli.

Followers

Individuals who support and are guided by a leader or subscribe to a particular doctrine, cause, or person.

Leadership Styles

Various approaches to leading a team or organization, ranging from authoritarian to democratic to transformational leadership.

Women

Female human beings, often discussed in contexts involving gender equality, roles, and societal treatment.