expense QUESTION 4 Emco Company uses direct labour cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labour cost as indirect labour. The effect of this misclassification on the predetermined rate will be to: O understate the predetermined overhead rate. overstate the predetermined overhead rate. 0 have no effect on the predetermined overhead rate. 0 cannot be determined from the information given