4 The following is information for Precision Company Ltd: Actual manufacturing overhead cost incurred Actual direct Labour hours worked 84,000 27,000 Precision Company used a predetermined overhead rate last year of 3 per direct Labour hour. The predetermined rate was based on an estimate of 24,000 direct labour hours to be worked during the year. The under-or overapplied overhead for the year was: 3,000 underapplied 3,000 overapplied. 12,000 underapplied. 12,000 overapplied. 5 in a job order cost system, the issue of indirect materials into production is recorded as a decrease in: Raw Materials Inventory