Marc Smith Company closes any under-or over-applied overhead to cost of goods sold. Failure to eliminate (ie, close) an over-application of manufacturing overhead will result in which of the following situations? Cost of Goods Sold Understated Income Overstated Cost of Goods Sold Overstated Income Understated Cost of Goods Sold Understated Income Understated Cost of Goods Sold Understated Income No Effect Cost of Goods Sold Overstated Income No Effect