Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $268,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $305,000 and 23,800 hours, respectively. Required: 1. Compute over- or underapplied overhead. 20. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead? es Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead? Cost of Goods Sold Manufacturing Overhead decreased by increased by $ 13,920