1. **State the problem:** Valley Corporation uses direct labor hours to allocate manufacturing overhead. We need to calculate the overhead applied at the end of the year using the predetermined overhead rate. 2. **Calculate the predetermined overhead rate:** The predetermined overhead rate is calculated at the beginning of the year using estimated values. $$\text{Predetermined overhead rate} = \frac{\text{Estimated total manufacturing overhead}}{\text{Estimated direct labor hours}} = \frac{341,890}{17,900} = 19.09 \text{ per direct labor hour}$$ 3. **Calculate the applied overhead:** At the end of the year, the applied overhead is calculated by multiplying the predetermined overhead rate by the actual direct labor hours. $$\text{Applied overhead} = 19.09 \times 16,700 = 318,703$$ 4. **Interpretation:** The applied overhead at the end of the year is RM318,703. This is the overhead cost allocated based on actual labor hours worked. 5. **Compare applied overhead with actual overhead:** Actual overhead was RM336,890, so the overhead is underapplied by: $$336,890 - 318,703 = 18,187$$ **Final answer:** The overhead applied at the end of the year is RM318,703, and the overhead is underapplied by RM18,187.