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In computing its predetermined overhead rate, Brady Company included its factory insurance cost twice. This error will result in:

a. the ending balance of Finished Goods to be understated.

b. the credits to the Manufacturing Overhead account to be understated.

c. the Cost of Goods manufactured to be overstated.

d. the Net Operating Income to be overstated.

Accounting Basics, Accounting

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  • Reference No.:- M945844

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