Smith Comp. uses a job order costing system in the manufacture of custom cabinets made of wood. As each job gets done, Smith sets a selling price on the product based on the total cost of the job. At the end of the year, Smith discover that the predetermined overhead rate that they use was too high and that the manufacturing overhead was severely over-applied. Assuming that Smith has several competitors in the industry. What effects this situation have on Smith's competitive position?