M2-10 (Algo) Calculating Over- or Underapplied Manufacturing Overhead (LO 2-5) Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $274,000 and direct labor hours to be 20,000. Actual overhe and actual direct labor hours for the year were $320,000 and 24,400 hours, respectively. Required: 1. Compute over- or underapplied overhead. 2a. 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? Complete this question by entering your answers in the tabs below. Req1 Reg 2A Reg 2B Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?