Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $412,200; materials of $419,000 and direct labor of $229,000. During the year Adams incurred $436.000 in materials costs, $430,300 in overhead costs and $233,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year. Multiple Choice $18,300 overapplied $10,900 underapplied. $18100 underapplied. $10,900 overapplied. $5.700 underapplied