The following information is for Punta Company for July: 1. Factory overhead costs were applied to jobs at the predetermined rate of $42.50 per labor hour.
2. Job S incurred 6,175 labor hours; Job T used 4,275 labor hours.
3. Job S was shipped to customers during July.
4. Job T was still in process at the end of July.
5. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July.
6. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows:

Utilities $14,250
Depreciation 45,000
Insurance 18,000
Total $77,250

Direct materials and indirect materials used are as follows:

Job S Job T Total
Material A $28,500 $71,250 $99,750
Material B 12,000 35,000 47,000
Subtotal $40,500 $106,250 $146,750
Indirect materials 211,000
Total $357,750

Direct labor incurred for the two jobs and indirect labor are as follows:

Job S $55,500
Job T 45,000
Indirect labor 133,000
Total $233,500

Required:
a. Calculate the total manufacturing cost for Job S and Job T for July. (Round your intermediate calculations and final answers to 2 decimal places.)
b. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.