A manufacturing company uses direct labour cost as a basis for determining its predetermined overhead recovery rate. In calculating the predetermined overhead recovery rate for the past year, the company misclassified a portion of direct labour cost as indirect labour cost. This misclassification will $...$

a$.$ overstate the predetermined overhead recovery rate.

b$.$ It is impossible to tell if there will be any effect, based on the information provided.

c$.$ have no effect on the predetermined overhead recovery rate

d$.$ understate the predetermined overhead recovery rate.