MC Qu. 126 Adams Manufacturing allocates... Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $363,800; materials of $404,000 and direct labor of $214,000. During the year Adams Incurred $386,400 in materials costs, $382 200 in overhead costs and $218,000 In direct labor costs. Compute the amount of under- or overapplied overhead for the year. O $11600 overapplied. O $18,400 overapplied. O $11,600 underapplied O $18,400 underapplied. O $4.200 underapplied