e-1. Find the total over- or under applied (both fixed and variable) overhead. e-2. Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or under applied overhead? Smaller expense Larger expense Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant produces and sells one product The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit with overhead applied based on direct labor hours, are as follows: Expected sales activity 20fr000 units at $42500 per unit Desired ending inventories: 10% of sales Assume this is the first year of operations for the Bellingham plant During the year. the company had the following activity