Question: AI Inc. uses machine hours as the allocation base for monthly manufacturing overhead cost. The company applied $200,000 of overhead for June and the actual

AI Inc. uses machine hours as the allocation base for monthly manufacturing overhead cost. The company applied $200,000 of overhead for June and the actual overhead is $210,000. The company should

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decrease the cost of goods sold by $10,000

decrease the period cost by $10,000

increase the cost of goods sold by $10,000

increase the period cost by $10,000

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