Lakeshore Company allocates overhead using direct labour-hours. For 2020, the estimated and actual labour-hours were 188,000 and 171,000 respectively, and the predetermined overhead rate used to apply overhead for the year was $24.70 per direct labour-hour. The manufacturing overhead control T-account showed a credit balance of $187,750 at the end of the year, and this balance was disposed of at the end of the year by closing it to cost of goods sold. Required: 1. Was manufacturing overhead under- or overapplied? O Underapplied O Overapplied 2. Compute the actual overhead amount incurred over the year. Actual overhead 3. How will end-of-period disposal of this amount impact net income? Increase O Decrease