Question $8$

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adarns estimated total overhead of $$396,000$; materials of $$410,000$ and direct labor of $$220,000.$ During the year Adams incurred $$418,000$ in materials costs, $$413,200$ in overhead costs and $$224,000$ in direct labor costs. Compute the amount of under$-$or overapplied overhead for the year.

$$10,000$ overapplied.

$$17\mathrm{.}200$ overapplied.

$$10\mathrm{.}000$ underapplied.

$$17\mathrm{.}200$ underapplied.

$$4,800$ underapplied.

Question $9$