Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $$380,800$; materials of $$414,000$ and direct labor of $$224,000.$

During the year Adams incurred $$403,200$ in materials costs, $$398,000$ in overhead costs and $$228,000$ in direct labor costs. Compute the amount of under$-$or overapplied overhead for the year.

Multiple Choice

$$10,400$ overapplied.

$$17,200$ underapplied.

$$17,200$ overapplied.

$$10,400$ underapplied.

$$5,200$ underapplied.