Howard Lumber Company mistakenly classified a product cost as an expense that totaled $16,300. The company produced 1,630 units of product and sold 815 of them during the year. Management is paid a bonus equal to 2% of net income. In the year in which the mistake was made: Multiple Choice product costs were overtnted, management bonuses were underpaid. the company's income statement portrayed a more favorable position than actually existed the company's income was overstated