OMG inc used a job-order costing system with a plant-wide overhead rate based on labor hours. At the beginning of the year, the company made the following estimates: Labor-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing cost per machine hour 120,000 $600,000 $3.00 OMG inc completed 8 jobs over the year using a total of 120,600 machine hours. The actual amount of MOH incurred for the year was $985,000. Before making the adjustment to COGS for any overapplied or underapplied MOH, which of the following is true? Multiple Choice Before adjustment, the cost of goods sold is understated by $25,000 Before adjustment, the cost of goods sold is overstated by $25,000 Before adiustment, the cost of aoods sold is understated by $20.200