Ritchie Company adjusts cost of goods sold when overhead is over- or underapplied. The overhead rate for the year is $2 per direct labor hour. Estimated direct labor hours were 20.000. labor hours were 25,000 and actual overhead cost was $55,000. What is the adjustment to cost Overhead is underapplied by $5,000, therefore add this amount to cost of goods sold. Overhead is overapplied by $5,000, therefore subtract this amount from cost of goods sold. Overhead is underapplied by $15,000, therefore add this amount to cost of goods sold. Overhead is overapplied by $15,000, therefore subtract this amount from cost of goods sold. The following information is reported by Duke Company: end of the accounting period, which of the following would be true