Voldemort Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate, the company misclassified a portion of indirect labor cost as direct labor. All else equal, the effect of this misclassification will be to:

Have no effect on over$-$ or under$-$applied overhead.

Have an indeterminate effect on the over$-$or under$-$application of overhead.

Increase the likelihood of reporting overapplied overhead at period end.

Increase the likelihood of reporting underapplied overhead at period end.