Travis Company’s records show that overhead was overapplied…

Trаvis Cоmpаny's recоrds shоw thаt overhead was overapplied by $10,600 last year. This overapplied overhead was closed out to the Cost of Goods Sold account at the end of the year. In trying to determine why overhead was overapplied by such a large amount, the company has discovered that $6,400 of depreciation on factory equipment was charged to administrative expense in error. Given the above information, which of the following statements is true?