Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $391,000; materials of $420,000 and direct labor of $230,000. During the year Adams Incurred $414,600 in materials costs, $408,800 in overhead costs and $234,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year. Multiple Choice $11,000 overapplied. $17,800 overapplied. $11,000 underapplied. $17,800 underapplied. $5,800 underapplied