Use the information below to answer the following two questions.

Joyce Company uses a job$-$order costing system and applies manufacturing overhead $($MOH$)$ with traditional method based on direct labor cost $($DLC$).$ At the beginning of December, the following information was estimated:

Estimated MOH $ $340,000$

Estimated DLC

$ $425,000$

Partial activity posted during the month of December is shown in the $T-$accounts below:

$\backslash$table$[[,$Raw Materials $($All Direct$)],[$Beg Bal,$$,72,500],[$Purchases$,142,000,],[$End Bal $$,69,450,]]$

$\backslash$table$[[,$Work in Process$],[$Beg Bal,$$,73,000],[$DM Used,?,$],[$Actual DLC$,418,000,],[$MOH$,?,],[$End Bal,$$,75,000]]$

$\backslash$table$[[,$Finished Goods$],[$Beg Bal $$,3,000,],[$COGM$,?,],[$End Bal $$,4,500,]]$

$17$ Cost of Goods Manufactured $($COGM$)$ for the month of December was:

A$.$ $$877,300$

B$.$ $$,892,400$

C$.$ $$895,450$

D$.$ $$897,450$

E$.$ None of the above

$18$ Joyce company has a policy to close any under$-$ or over$-$applied overhead costs to cost of goods sold at the end of the year. Suppose it failed to do so$,$ what would be the impact of this error on the company's net operating income?

A$.$ understated by

B$.$ overstated by

$$23,750$

$ $23,750$

$D.$ overstated $by$ $$18,150$

$$,18,150$

E$.$ None of the above