E 15. At the end of this year, Compumatics had compiled a total of 89,920 labor hours worked. The actual overhead incurred was $1,143,400.

1. Using the overhead rate computed in E 14, determine the total amount of overhead applied to operations during the year.

2. Compute the amount of overapplied overhead for the year.

3. Will the Cost of Goods Sold account be increased or decreased to correct the overapplication of overhead?